The company employs 1100 staff nationally, including more than 530 in NSW and 301 in the Hunter.

Staff will receive a Coles/Myer $200 gift voucher when they provide proof they have received their second dose of vaccine.

"Each day we are seeing hundreds of new cases of the virus reported. The way forward to beat the virus is having the population vaccinated as soon as possible," MJH Group Managing Director Andrew Helmers said.

"Our leadership group had been looking at what we could do and came up with the idea of rewarding staff who get vaccinated. We had a few ideas and settled on the gift voucher."

The initiative follows a recent change in regulations from the Therapeutic Goods Administration to allow companies to offer cash and other rewards for people who get the jab.

"Businesses can now supplement government public health campaigns through offers of practical support (including rewards) that encourage Australians to be vaccinated," the Therapeutic Goods Administration said in a statement.

While some employers have made vaccination mandatory, others believe the carrot rather than the stick approach will be more effective in the long run.

Mr Helmers said the vaccination incentive was another way of ensuring the safety of all staff.

"The response from staff has been overwhelmingly positive and already more than 40 employees have come forward to show they have been vaccinated and will be receiving their reward," he said.

Covid-19 Taskforce Commander Lieutenant-General John Frewen last week said incentives were "something we will consider" in an effort to increase vaccination rates across the country.

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