Company Will Pay Its Workers $138 Million To Have Kids

Trip.com, a global online travel agency and one of the largest in the world is introducing a generous incentive of 1 billion yuan ($138 million). 

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This incentive will be provided to full-time employees who have completed a minimum of three years with the company, regardless of their gender, position, or work location.

Qualified employees will receive an annual bonus of 10,000 yuan ($1,376) for each newborn child. This bonus will be granted every year, starting from the child's first birthday until they reach the age of five. The annual bonus will remain consistent throughout this period, serving as ongoing support for the employees' growing families.

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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.”

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 fulfill their desire to have multiple children.”

“Companies can also play a role within their own capabilities to build a favorable reproductive environment.”

Liang's announcement mirrors the efforts of other Chinese companies, including Beijing Dabeinong Technology, an agricultural business, which has implemented similar initiatives. These initiatives come at a time when China is grappling with a pressing demographic crisis.

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Trip.com's incentive program follows a significant revelation made in January, indicating that China's population has begun to decline for the first time in 60 years. 

According to the National Bureau of Statistics, the population in China witnessed a decline of 850,000 in 2022, partly attributed to the impact of the Covid-19 pandemic. The country is also grappling with the challenges of declining birth rates and an aging population, adding to the urgency of addressing the demographic crisis.

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Encouraging Chinese citizens to have more children faces complexities as millennials are opting not to marry due to concerns over costs and personal preferences. This factor poses a significant hurdle in efforts to boost the birth rate in the country.

Some 6.83 million couples married in 2022, according to data released by China’s Ministry of Civil Affairs earlier this month. That’s down around 10.5% from the 7.63 million marriages registered in 2021 and is the lowest number on record since the ministry began publishing the data in 1986.

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In China, having children outside of wedlock is generally considered unacceptable. However, due to the declining population, one Chinese province has lifted restrictions to promote an increase in the birth rate.

While national reproductive policies do not explicitly prevent women from having children, proof of marriage is typically required to access essential services such as free prenatal healthcare, maternity leave, and job protection.

In January, the health commission of Sichuan province announced a significant policy change, allowing unmarried individuals to have children. Moreover, the number of birth registrations will no longer be restricted. 

Prior to this change, only married couples were permitted to register up to two children with local authorities.

These new measures in Sichuan province are set to remain in effect for the next five years, aiming to address the declining birth rate and support the population growth in the region.