China's Trip.com is introducing new childcare subsidies worth $138 million to encourage its 32,000 employees to have kids as the country struggles with an ageing population.
The company, which is one of the world’s largest online travel agencies, is offering the 1 billion yuan incentive to full-time workers who have been with the company for at least three years - regardless of their gender, position or job location.
Those eligible will receive an annual bonus of 10,000 yuan ($1,376) for each new-born child every year from the child’s first birthday until the age of five.
Trip.com executive chairman James Liang said of the policy, which takes effect on Saturday, in a statement: “Through the introduction of this new childcare benefit, we aim to provide financial support that will encourage our employees to start or grow their families without compromising on their professional goals and achievements.”
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Liang added: “I have always suggested that the government give money to families with children … to reduce the family’s child-rearing costs and help more young people fulfil their desire to have multiple children.
“Companies can also play a role within their own capabilities to build a favourable reproductive environment.”
Liang’s announcement follows similar initiatives by smaller Chinese companies, such as agricultural business, Beijing Dabeinong Technology, and comes as the country faces a demographic crisis.
Trip.com’s incentive comes after it was revealed in January that China’s population started shrinking for the first time in 60 years.
In 2022 the population dropped by 850,000, which was part due to the Covid-19 pandemic, according to the National Bureau of Statistics. The country also struggles with falling birth rates and an ageing population.
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Encouraging Chinese citizens to have more babies isn’t as simple as it sounds, as millennials are not getting married due to cost concerns and personal choices.
It is seen as unacceptable for couples to have children out of wedlock, but due to the falling population, a Chinese province lifted restrictions to increase the country’s birth rate.
National policies regarding reproduction do not explicitly stop women from having babies, however proof of marriage is usually required for parents to access free services like prenatal healthcare, maternity leave and job protection.
The health commission for Sichuan announced in January that it will allow unmarried people to have children and the number of birth registrations would no longer be restricted.
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Before the change, the commission had only permitted married couples to have up to two kids registered with local authorities.
The new measures will remain in place for the next five years.
Topics: China, News, World News, Money, Parenting