The state joins Victoria, Tasmania and Western Australia as participants of the scheme aimed at workers who are required to self-isolate, quarantine or care for someone for 14 days but have exhausted all leave entitlements, including any special pandemic leave.
This scheme also covers temporary visa holders currently working in Australia.
NSW Premier Gladys Berejiklian said the payment arrangements would support the state’s efforts in protecting against the further spread of COVID-19.
“We are ensuring we continue to do everything we can to protect the community against undetected transmission,” she said.
“Our priority is for people to get tested and follow all the health advice to stop the spread of the virus and keep the NSW economy moving.
“We do not want some workers to have to choose between isolating and financially supporting themselves or their dependents.”
Workers eligible for the scheme will be able to claim a $1,500 lump-sum payment to cover the 14-day isolation period.
They can claim a payment again should an extended quarantine period longer than 14 days be instructed by health officials.