China National Health Commission: China to reduce costs of childbirth, childcare, and education; improve maternity leave policy

China National Health Commission: China to reduce costs of childbirth, childcare, and education; improve maternity leave policy

BEIJING, July 2, 2025 — In a bid to bolster its flagging birth rate, China has announced a comprehensive package of measures aimed at reducing the financial burden on families. The National Health Commission (NHC) has unveiled a series of initiatives that include childcare subsidies, improvements to maternity leave policies, and enhancements in childbirth and education costs.

The NHC has announced an annual childcare subsidy of 3,600 yuan ($502) for children under three years old, effective from January 1, 2025. This subsidy is expected to benefit over 20 million families [1]. The subsidy will be funded by the central government, rather than local authorities, and will not be treated as taxable income or counted when determining eligibility for poverty assistance [4].

In addition to the childcare subsidy, the NHC is also working to improve maternity leave policies. The southwestern province of Sichuan has proposed extending marriage leave from five to 25 days and increasing maternity leave from 60 days to 150 days. These changes aim to provide greater support for women in the workforce and encourage them to start families [4].

The NHC's initiatives are part of a broader effort to address the challenges posed by China's aging population and declining birth rates. China's population fell for the third consecutive year in 2024, with experts warning of a worsening downturn [1, 2]. The one-child policy implemented from 1980 to 2015, coupled with rapid urbanization, has contributed to the decline in birth rates [1, 2, 4].

The NHC's measures are expected to have a significant impact on the cost of childbirth, childcare, and education for families in China. However, some demographers argue that the subsidies may not be sufficient to incentivize people to have children. Emma Zhang, a professor at Yale University, noted that while the move was positive, the amount was likely too small to have a near-term impact on the birth rate or consumption [2].

Despite these challenges, the NHC's initiatives are a significant step towards creating a more "fertility-friendly society" in China. The central government's commitment to funding these policies and the proposed improvements to maternity leave policies demonstrate a willingness to address the long-term challenges posed by an aging population and declining birth rates.

References:
[1] Reuters. (2025, July 28). China unveils childcare subsidies push to boost fertility. Retrieved from https://www.reuters.com/markets/emerging/china-unveils-childcare-subsidies-push-boost-fertility-2025-07-28/
[2] NBC News. (2025, July 28). China unveils child care subsidies push to boost fertility. Retrieved from https://www.nbcnews.com/world/asia/china-unveils-child-care-subsidies-push-boost-fertility-rcna221646
[3] Human Resources Online. (2025, July 28). China to provide RMB3,600 subsidy every year to each child until the age of 3. Retrieved from https://www.humanresourcesonline.net/china-to-provide-rmb3-600-subsidy-every-year-to-each-child-until-the-age-of-3
[4] The Independent. (2025, July 28). China will offer parents an annual childcare subsidy of 3,600 yuan to boost birth rate. Retrieved from https://www.independent.co.uk/asia/china/china-childcare-birth-rate-boost-b2797888.html