Parents in China are being offered 3,600 yuan approximately $500 a year for each of their children under the age of three in the government’s first nationwide subsidy aimed at boosting birth rates.
The country’s birth rate has been falling, even after the ruling Communist Party abolished its controversial one-child policy almost a decade ago.
The handouts will help around 20 million families with the cost of raising children, according to state media.
Several provinces across China have piloted some form of payouts to encourage people to have more children as the world’s second largest economy faces a looming demographic crisis.
The scheme, which was announced on Monday, will offer parents a total of up to 10,800 yuan per child.