Communities Minister Gordon Lyons made the announcement during a visit to DfC offices by DWP Minister Andrew Western.
The roles in benefit delivery will be located in four existing DfC sites across Northern Ireland and are expected to bring additional inward investment of around £35 million per year.
The expansion will build on an existing agreement with DWP for the delivery of child maintenance and benefit services in Great Britain with the majority of the additional jobs permanent, full-time posts.
Minister for Communities Gordon Lyons said: “The creation of 1,000 new jobs is a massive boost for the local economy and is testament to the quality of service being delivered by my Department.
“At present, over 3,600 people within DfC are currently engaged in delivering services for DWP. This vital work is delivered out of sites in Belfast, Londonderry, Ballykelly and Ballymena.
“On a daily basis they are making an invaluable contribution supporting citizens across Britain to access welfare, pensions and child maintenance services.
“I am pleased to announce a strengthening of this long-standing relationship with the creation of a further 1,000 jobs over the coming months, offering a majority of permanent full-time roles and opportunities across Northern Ireland.”
Minister for Transformation at DWP, Andrew Western said: “I was delighted to visit Northern Ireland for the first time as a DWP Minister to see the positive impact the DfC teams are delivering on the ground.
“Bringing 1,000 new service delivery jobs to these four areas of Northern Ireland will be invaluable to the local economy through providing more jobs for people and in delivering a key service for our customers.”