CEO Andy Penn sent a message to employees on Monday to say that – starting with Australian workers – the company was working to encourage a "level of solidarity" when it came to getting the jab.
Employees who do will be given 200 "Appreciate points" – the equivalent of $200 which can be spent in Telstra's online store.
"Getting vaccinated will make an incredible difference – we can protect each other, lessen the financial hardship on families, and turnaround the toll on our wellbeing caused by the uncertainty and isolation from rolling lockdowns," Mr Penn said in his message.
"Now is the time to act – to roll-up our sleeves and get vaccinated, or make an informed decision so you are ready when supplies are available to you.
"I've had the jab and I know many of you have as well, but it is something I urge all of you to do, as soon as you can."
Mr Penn said the incentive would be applied retroactively to those who has already been vaccinated.
And in recognition of those who were not yet eligible in their jurisdictions, it is set to remain available until at least December 31.
Telstra has not yet made getting vaccinated a requirement for "certain roles", Mr Penn said.
"However, we will continue to consider relevant government and health advice, particularly for our people working in high-risk locations and with vulnerable people, such as aged care, hospitals and Indigenous communities," he said.
Mr Penn acknowledged that not all employees would feel the same way about the COVID-19 vaccine but urged everybody to be "respectful".
"Personally and as a company, we believe that being committed to getting people vaccinated is the right thing to do," he said.
A Telstra spokesperson said the initiative had been "universally applauded" by employees and there had been very high engagement.