The Chinese mainland has launched a new nationwide childcare subsidy program to ease the financial pressure on young families and boost birth rates.
Starting this year, every household with a child under three years old will receive 3,600 yuan per child annually. The subsidy is exempt from individual income tax and won’t count as personal income when assessing eligibility for other social assistance programs.
Officials estimate the policy will help more than 20 million families each year. The State Council Information Office will host a press briefing on the childcare subsidy system and related fertility support measures at 2 p.m. on Wednesday.
“The childcare subsidy policy is a timely relief. It will play a very important role in reducing the childcare burden of families and further building a child-friendly society,” says Ma Liang, professor at the School of Government at Peking University. “The subsidy is given as soon as a child is born, not just for the second or third child.”
He Dan, director general and research fellow of the China Population and Development Research Center, adds, “Raising children is a social responsibility, and the labor of giving birth and raising children has significant social value. This policy affirms that value and encourages society to respect parenting.”
As the world’s most populous country, the Chinese mainland faces a twin demographic challenge: seven consecutive years of declining birth numbers, followed by a modest rebound in 2024, alongside a rapidly aging population of over 310 million residents aged 60 and above. Local governments have piloted similar schemes in recent years, and the new national plan provides room for tailored regional measures to further support families.
Reference(s):
cgtn.com
