Guernsey's Policy and Resources Committee says it will provide support to businesses in a 'critical' situation because of staff having to self-isolate.
The scheme would be based on the current Payroll Co-funding scheme with support allocated on a case by case basis.
It comes after concern from some small businesses that enforced two-week isolations may put them at risk of collapse.
Those who are advised to self isolate for four or more days and are unable to work from home can claim sickness benefit, up to a maximum weekly rate of £168.07- though this is based on an individual’s own contribution.
The Committee says while this would not make up the normal income for many businesses, isolation is likely to be short term and the likelihood of being required to self isolate is currently low.