China Makes Maternity Payment Change in Bid To Boost Birth Rate
Summary
China is changing how maternity leave payments are made in 25 provinces to encourage more births. Starting November 1, payments will go directly to mothers instead of through employers. This change aims to make the process faster and help reduce financial challenges for families.Key Facts
- China has a low fertility rate of about 1.0, below the replacement level of 2.1 births per woman.
- In 25 Chinese provinces, mothers will get maternity leave payments directly from the government starting November 1.
- These payments cover living expenses during the standard 98-day maternity leave.
- Previously, employers distributed these payments after getting funds from local healthcare offices.
- The change is to simplify the process and reduce delays, making it easier for families to get the money.
- He Yafu, a demographer, mentions it will benefit workers in informal jobs who don't have direct employers.
- The National Healthcare Security Administration said the new system will cover most areas where social insurance funds are given out.
- The success of this and other measures, like cash allowances per child, remains uncertain in reversing the low birth rate.
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