The Mother and Baby Institutions Payment Scheme will open on March 20th.
The scheme will give priority to older applicants, with the first payments expected to be made in the second quarter of the year.
Announcing the move, Minister Roderic O'Gorman said it's a key element of the government's action plan for survivors and former residents of mother and baby homes and county home institutions.
Minister O'Gorman has also announced the appointment of the former CEO of the Adoption Authority of Ireland Patricia Carey to the role of Special Advocate for Survivors following a recruitment campaign through the Public Appointments Service.
Patricia Carey's remit includes Mother and Baby Institutions, County Homes, Magdalen Laundries, Industrial and Reformatory Schools, and related institutions, and those adopted, boarded out or the subject of an illegal birth registration.