Premier Daniel Andrews said the rules would return to those in place at Christmas, when masks were only required in some settings, such as when people were inside a supermarket or using public transport.

He said the change could be made because no new locally-transmitted cases had been recorded in the state.

"To produce eight days of zero [new cases]... is a credit to our public health team and to all the Victorians who've played their part," he said.

As of 11.59pm on Sunday masks will only be mandatory: on flights, in airports, in hospitals, on public transport, in supermarkets, commercial passenger vehicles, shopping centres and other large retail stores.

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Mr Andrews also announced that from Monday private sector employers will be able to have up to 50 per cent of staff working from the office.

For public sector offices the cap will be 25 per cent.

People should still carry masks with them at all times, even when not intending to use it.

The update came on a day when Victoria recorded its eighth consecutive day without community transmission.

The number of known active cases of the virus in Victoria has dropped to 29, with 16,533 test results received. There were 35 known active cases of COVID-19 in the state on Wednesday.

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