Mayors in Northern Tasmania say they're yet to make a final decision on whether or not they support union demands for the federal government to introduce a wage subsidy.
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The Australian Services Union has expressed fears the jobs of council workers could be in the firing line because of the coronavirus pandemic.
Coronavirus: All the latest updates on COVID-19 for Tasmania
Councils will lose millions of dollars because of the pandemic and if harsher restrictions preventing people from working are introduced, the union fears councils would stand down staff and not be able to pay their wages.
Unions want the government to temporarily pay about 80 per cent of stood down workers wages and an announcement about a subsidy is expected to be made this week.
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Dorset Council Mayor Greg Howard said most councils could afford to keep paying staff who might have to be stood down.
"We have decided that if the times comes when non-essential staff are required to be stood down because of federal or state government requirements, we will continue to pay them," Councillor Howard said.
"They'll be stood down on full pay."
Northern Midlands Council Mayor Mary Knowles said councilllors would be "advised on that" when asked if she supported the idea of a wage subsidy.
"I'm not personally sure if we've actually had to put anyone off, I hope we haven't but that's obviously going to be more of possibility as time goes on," Cr Knowles said.
"Some councils will be able to absorb the costs easier than others."
West Tamar Council Mayor Christina Holmdahl said if there was a need, the government would be called on to help her council.
"Our staff are all on full pay, nobody has been stood down," Cr Holmdahl said.
"We certainly hope to be able to ride through this without having to do it."
George Town Council Mayor Greg Kieser said he was open to the wage subsidy idea.
"Some assistance may be prudent but everybody has a role in getting us through this," Cr Kieser said.
"I don't think you can be responsible in making any iron clad guarantee promises in an environment that is changing as rapidly as the one we are living in today."
