More than 500 health workers given a $1000 coronavirus bonus payment in error will get to keep it after Tasmania's government backflipped on a repayment directive.

On Thursday morning, Premier Jeremy Rockliff said the department of health was seeking to recover the payments made accidentally because of a "system error".

"I'm advised that those who received the allowance incorrectly amounted to 554 employees at a cost of $419,272," he told state parliament.

Several hours later, Mr Rockliff said he had instructed the department of health to cease recovery action.

"No health workers will have to pay back their frontline COVID bonus," he said in a statement.

"I know some were paid it who weren't eligible, and have been asked to pay it back.

" ... it's not happening. It's our mistake and we'll own it."

Health and Community Services Union industrial manager Robbie Moore said about 60 Ambulance Tasmania workers had received a letter telling them to repay the $1000.

He said workers included triple zero call centre operators, a paramedic on compensation and main office staff who were involved in developing COVID-19 protocols.

"It's ridiculous. These staff (were) ... very impacted by COVID and deserve the payment," he said.

The government in October announced a $2000 bonus for more than 11,000 pandemic frontline health staff to be paid in two instalments of $1000.

To be eligible for the payment people needed to have worked in a clinical centre between December 15, 2021 and July 31, 2022 providing direct or indirect patient care, Mr Rockliff said.

"Last year, the (department of health) secretary outlined there had been system errors in relation to the payments," he told parliament.

"I was advised some staff eligible for the payment did not receive it, while some who were ineligible did.

"Steps were taken at that time to put a halt to payments."

The Labor opposition and the Greens both pushed Mr Rockliff to overturn the repayment directive before he made the announcement.

"How is this any way to say thanks to the Tasmanians who helped keep the rest of us safe during the pandemic?" Labor MP Anita Dow said.