Those in States-owned housing can now earn as much as they like without putting their tenancies at risk.
The Employment and Social Security Committee is suspending the rules in an attempt to help employers with the ongoing staff shortage.
It is being described as an 'interim step' until the end of 2022.
However, any tenants who receive a “top-up” from income support are still required to declare all earnings as usual.
The committee's director of operations Ed Ashton said says that this is part of a wider plan to help solve the labour shortage.
"It is important to highlight that there is already other support offered through the Job Centre aimed at employers and jobseekers, such as the two recruitment grant for employers, various schemes to enable employers to open up work opportunities for jobseekers and access to training for jobseekers to improve their chances of finding work."
Deputy Steve Falla says that the decision to suspend limits was 'an important step'.
"The current labour shortages are a significant concern and suspending the income limits applied within social housing is something our committee considered an important step in order to further increase States support to the businesses community.
We are also looking at how we might be able to support non-employed people who may be able to re-enter the labour market and we will be engaging with business sector leaders shortly to discuss options."
Next year ESS will look into the policy further, deciding how best to 'incentivise people to work and maximise their earnings'.