U.S. President Barack Obama renewed his push Monday for an extension and expansion of a payroll tax cut that benefits 160 million American workers.

The current tax cut was worth about $1,000 to the typical worker this year, but it expires at the end of the month and workers’ taxes would increase in January.

Mr. Obama said that with the country’s economic recovery “still fragile,” Congress should quickly renew the cut in the payroll tax that helps fund government pensions for older Americans. He said it also should be expanded to about $1,500 for the average worker and that Congress should also renew assistance for unemployed workers who have been out of work for an extended period.

Congress has started debate on extending the payroll tax cut and jobless benefits but Democratic and Republican lawmakers have so far been unable to reach agreement. The Senate last week rejected Mr. Obama’s plan, as well as a competing Republican proposal.