Childcare Subsidy of 2.25 Million Won Over 3 Years... This Country Eases the Burden on Parents

China's Childcare Subsidy Coverage Reaches 80%
Annual Payment of 750,000 Won per Child Until Age Three

China is moving forward in earnest with a childcare subsidy system that provides 3,600 yuan (approximately 750,000 won) per child annually.

According to the Chinese economic media outlet Diyi Caijing on January 10, the number of recipients for the 2025 childcare subsidy has surpassed 24 million, with the nationwide subsidy coverage rate reaching around 80%. The National Health Commission announced that it would further accelerate the payment process to complete the 2025 childcare subsidy distribution as soon as possible.

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In July last year, the State Council announced the 'Implementation Plan for the National Childcare Subsidy System.' This is the first childcare subsidy policy introduced at the central government level in China. Under this system, 3,600 yuan is provided annually for each child until they reach the age of three, meaning a family can receive up to 10,800 yuan (2.25 million won) over three years. The subsidy covers up to three children per family.

The National Health Commission began accepting applications for the 2026 childcare subsidy on January 5. Citing data from the National Bureau of Statistics, Diyi Caijing reported that the total number of births in China from 2022 to 2024 was about 28 million. If 3,600 yuan is provided per child annually, it is estimated that the annual total fiscal expenditure will reach 101.2 billion yuan (approximately 21.14 trillion won).

China's low birth rate has already become a serious economic and social issue. According to the National Bureau of Statistics, as of 2024, China's total fertility rate was 1.08, about half of the 2.1 needed to maintain the population. The total population has declined for three consecutive years from 2022 to 2024, and the annual number of newborns has remained below 10 million for three years in a row.

Local experts in China believe that, since the causes of low birth rates are complex, additional measures to boost the birth rate are needed alongside the subsidy policy. In response, China is also working to introduce a childcare service system in addition to the childcare subsidy. At the end of last year, the Standing Committee of the 14th National People's Congress reviewed a draft of the Childcare Service Law for the first time. The government aims to take the lead in providing childcare services and gradually incorporate them into the public service sector.

Some experts also argue that childcare subsidies should be gradually increased. They suggest that the subsidies, currently provided until age three, should be expanded to cover the entire pre-school education stage, including kindergarten. Xiong Bingqi, Vice President of the 21st Century Education Research Institute, emphasized, "Based on the per capita disposable income of urban residents, childcare costs account for about 50% of household expenditures, making it difficult to encourage childbirth. The subsidies should be gradually increased."