People isolating and unable to work can now claim incapacity benefit at more than double the normal rate.
The temporary fix has been put in place to encourage those who test positive to take the right decision and stay at home.
Treasury has temporarily increased support - from £86.55 a week to £230 a week - for the first 14 days.
It will apply to all claims from 18 July.
Support for businesses hit by staffing shortages is also being considered by the Manx government.
Treasury Minister, Alfred Cannan said: "We have been listening to concerns from individuals, businesses and representative groups in recent days about the increasing number of people having to isolate.
"The vast majority of workers having to isolate will be eligible for Incapacity Benefit for the period they are unable to work due to isolation.
"We recognise that the existing rate of Incapacity Benefit does not incentivise persons to take the right action and get tested if they show symptoms of COVID".
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