China will pay family allowances to boost the birth rate

However,

China will pay family allowances:

The Chinese government will pay an unprecedented annual allocation of around 420 euros per child under the age of three. Moreover, in order to relaunch the birth rate in the face of the current demographic crisis, a state media announced on Monday.

Prime Minister Li Qiang undertook in March to establish subsidies in child care. Meanwhile, The number of inhabitants in China. Similarly, the second most populous country in the world behind India, fell for the third consecutive year in 2024.

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Half less birth in 2024 than in 2016 – China will pay family allowances

The amount of the new allowance, paid under conditions, will be 3,600 yuan per year (around 420 euros), said state television CCTV, citing a decision by the Chinese government and the communist party in power.

“This is a major national measure to improve the well-being of the population,” china will pay family allowances said the chain. For example, “This provides direct financial assistance to families across the country to reduce the cost of education for children,” she added.

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China recorded only 9.54 million births last year, half less than in 2016. Therefore, The population decreased by 1.39 million in 2024. for the third consecutive year, and China lost its rank of the most populated country in the world for the benefit of India in 2023.

Population aging

According to some UN projections, the population could go from 1.4 billion inhabitants today to less than 800 million by 2100.

China also faces rapid aging of its population, which raises concerns about the viability of its pension system. In 2024, nearly 310 million Chinese were 60 years old or over.

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High education costs

The marriage rate is also at very low levels. in a context where many young couples give up having children, due to the high costs of education and the impact on their careers.

Analysts warn that these only subsidies will not be enough to reverses the demographic decline. nor to relaunch household expenditure, weak from the Cavid-19 pandemic.

“The amounts at stake are too low to have a short -term impact on the birth rate. consumption,” said Zichun Huang, an economist specializing in China within the Capital Economics. “But this is an important turning point in direct allowances paid to households. this could open the way for more financial aid in the future,” he said.

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The measure announced Monday applies retroactively from January 1, 2025. Concretely, the parents of babies china will pay family allowances born from this date will benefit from three years full of allowances at 3,600 yuan. Those whose children were born between January 1. 2022 and the date of entry into force of the measure will also have subsidies, but reduced.


More generous local measures

Before this unprecedented initiative of the central government. several local authorities had already established financial incentives to the birth rate:

  • A March, The city of Hohhot, capital of the Autonomous Region of Interior Mongolia (North), began to offer until 100,000 yuan (around 12,000 euros) per birth to couples with three or more children.
  • A Shenyang. In the province of Liaoning (northeast), families with a third child receive 500 yuan per month Until he was three years old.
  • A Hangzhou, In the Zhejiang (east), a single allowance of 25,000 yuan (around 3000 euros) is paid for the third child.

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China will pay family allowances

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