The General Office of the Communist Party of China Central Committee and the General Office of the State Council have released the Implementation Plan for Childcare Subsidy System (the "Plan").
The Plan will grant cash subsidies to the public nationwide, with the subsidy recipients and standards, application procedures, and distribution channels specified. Under the childcare subsidy system, starting from January 1, 2025, subsidies will be granted for children under the age of three who are born legally. The childcare subsidies will be distributed annually, with the current national basic standard being CNY3,600 per child per year, and will be provided until the child reaches the age of three. According to the Plan, for children born before January 1, 2025 and under the age of three, the subsidy amount will be calculated on a proportional basis pursuant to the number of eligible months. The childcare subsidies granted under the childcare subsidy system will be exempt from individual income tax. When determining eligibility for assistance such as the minimum living allowance or assistance for extremely impoverished persons, the childcare subsidies will not be included in their household or individual income. Regarding the application process, the Plan clarifies that the childcare subsidies shall be claimed by one of the parents or another legal guardian of the child at the place of household registration of the child.