China’s Ministry of Finance Details Big Moves: Accelerating Childcare Subsidies & Supercharging Social Welfare in 2025

Big news for anyone tracking China’s social and economic landscape!

The Ministry of Finance (Cáizhèngbù 财政部) is making significant strides to bolster support for “the elderly and the young” (yi lao yi xiao).

A key highlight? They’re fast-tracking the establishment and implementation of a childcare subsidy system.

This crucial update came from Ge Zhihao (Gé Zhìhào 葛志昊), head of the Department of Social Security, during a press conference on June 10, 2025, held by the State Council Information Office (Guo Xin Ban 国新办).

Let’s break down what this means and the broader fiscal commitments for 2025, designed to improve people’s livelihoods.

Fiscal Firepower: How China is Investing in its People in 2025

When it comes to social welfare programs, China isn’t holding back.

Ge Zhihao (Gé Zhìhào 葛志hão), representing the Ministry of Finance, laid out how the central government is ramping up investment in vital areas, directly impacting the vital interests of the people.

In 2025, both the national budget for education expenditure and social security and employment expenditure are hovering near a massive ¥4.5 trillion RMB ($625 billion USD) each!

That’s a notable bump of 6.1% for education and 5.9% for social security and employment, respectively, compared to previous figures.

Expenditures on health and other critical areas are also seeing robust growth.

The goal is clear: weave a stronger social “safety net” and continuously enhance the people’s sense of gain, happiness, and security.

Here’s a closer look at the five key pillars of this financial commitment, straight from the Ministry of Finance:

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1. Turbocharging Employment: More Jobs, Better Support with Robust Employment Subsidies

Supporting the strengthening of the employment-first policy.

• The central government is injecting a significant ¥66.74 billion RMB ($9.27 billion USD) in employment subsidies.
• This financial muscle empowers local governments to effectively implement diverse employment and entrepreneurship support policies.
• Key actions include:
  • Continuing to lower unemployment and work injury insurance premium rates, easing burdens on businesses.
  • Maintaining crucial policies such as the advance disbursement of unemployment insurance stability rebates.
  • Keeping employment internship subsidies active to foster work experience.
  • All of this is strategically designed to help enterprises navigate economic challenges and, importantly, stabilize jobs.
• A one-time employment expansion subsidy policy is being implemented, with its scope now broadened to include social organizations.
• This aims to specifically boost employment for college graduates and other young groups.
• There’s a strong, targeted focus on strengthening employment assistance for difficult-to-employ groups, such as individuals with disabilities and members of zero-employment families, promoting employment for these key demographics.
• Conditions for applying for skills improvement subsidies will continue to be relaxed, supporting the high-quality development of vocational skills training across the workforce.

2. Bolstering Basic Elderly Care Security: A Secure Future for Millions of Seniors

Supporting the improvement of basic elderly care security levels.

• The national basic pension for urban and rural residents, specifically the portion borne by the central government, will increase by another ¥20 RMB ($2.78 USD) per person per month.
• The basic pension for retirees is also set for an appropriate increase, reflecting ongoing adjustments.
• To ensure these essential benefits are paid out on time and in full, central government subsidies have been further increased this year.
• Simultaneously, national pooling adjustments for pension insurance are being carried out to streamline and strengthen the system.
• An estimated over 300 million elderly people are poised to benefit directly from these enhancements.

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3. Upgrading Basic Medical Security Levels: Healthier Lives, Lighter Financial Burdens

Supporting the improvement of basic medical security levels.

• The average financial subsidy standard per person for basic public health services will be further increased to ¥99 RMB ($13.75 USD) per person per year.
• For urban and rural residents’ medical insurance, the average financial subsidy standard per person will increase by another ¥30 RMB ($4.17 USD), reaching a new level of ¥700 RMB ($97.22 USD) per person per year.
• The central government is significantly boosting its investment in public health services and medical insurance for urban and rural residents.
• This directly supports local governments in enhancing the fairness and accessibility of basic medical and health services. The ultimate aim is to progressively lighten the burden of medical treatment for the people.

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4. Expanding Education Resources: Enhanced Quality and Access in China’s Education System

Supporting the promotion of enhanced quality and expansion of education resources.

• A substantial ¥80.945 billion RMB ($11.24 billion USD) in student aid subsidies has been allocated by the central government.
• This funding includes further raising the national scholarship and grant standards and expanding the coverage of these beneficial policies.
• A core part of the strategy involves promoting the optimization of regional education resource allocation.
• Local governments will be supported and guided to adapt to demographic changes in the school-age population.
• A key goal is to establish a basic public education service supply mechanism that is coordinated with these population changes.
• This promotes the balanced development of compulsory education and aims to gradually narrow the existing gaps between regions, urban and rural areas, different schools, and various student groups.
• There’s also dedicated support for the gradual implementation of free preschool education and for promoting the diversified development of senior secondary schools.

5. Strengthening Basic Living Security for Disadvantaged Groups: Ensuring No One is Left Behind

Supporting the strengthening of basic living security for disadvantaged groups.

• The central government has allocated a considerable ¥156.68 billion RMB ($21.76 billion USD) in assistance subsidies specifically for disadvantaged groups.
• This empowers local governments to distribute crucial relief funds in a timely manner.
• It ensures the consistent implementation of bottom-line security policies for groups facing extreme difficulties, low-income families, and other vulnerable populations.
• The Ministry of Finance will coordinate with relevant departments to guide local governments in enriching assistance methods.
• The primary focus here is on further improving the precision and effectiveness of assistance work.
• This ensures that disadvantaged groups can fully share in the achievements of national reform and development.

• Basic Public Health Services: Subsidy increased to ¥99 RMB ($13.75 USD) per person per year.
• Urban and Rural Residents’ Medical Insurance: Subsidy increased by ¥30 RMB ($4.17 USD) to ¥700 RMB ($97.22 USD) per person per year.
• Urban and Rural Residents Basic Pension (Central Govt. portion): Increased by ¥20 RMB ($2.78 USD) per person per month.
• Retiree Basic Pension: Set for an appropriate increase.

Spotlight on “The Elderly and The Young”: A Special Focus for 2025, Including the Childcare Subsidy System

Beyond these broad social welfare enhancements, Ge Zhihao (Gé Zhìhào 葛志昊) specifically highlighted the Ministry of Finance’s active collaboration with other relevant departments to improve the elderly and childcare service system.

This is a critical area, reflecting China’s demographic considerations and the increasing need for robust support structures for these two key population segments.

Here’s what’s on the agenda for services for “the elderly and the young” (yi lao yi xiao):

• Pushing forward community-supported home-based elderly care services: This aims to make it easier and more comfortable for seniors to receive necessary care within their familiar home surroundings.
• Strengthening care services for frail elderly individuals: Providing more specialized and intensive support for those elderly individuals who require a higher level of care. This is particularly crucial given China’s aging population trends.
• Promoting the high-quality development of inclusive childcare services: Expanding access to reliable and quality childcare options for a greater number of families.
• Accelerating the establishment and implementation of a childcare subsidy system: This is a potential game-changer! Direct financial support for childcare can significantly ease the economic burden on young families. This important initiative is progressing rapidly, demonstrating a commitment to better meet the people’s service needs concerning childcare.

These targeted efforts for “the elderly and the young” (yi lao yi xiao) are advancing swiftly, underscoring the government’s commitment to addressing pressing societal needs and adapting to demographic shifts.

Looking Ahead: A Stronger Social Safety Net and Support for Families

The Ministry of Finance’s 2025 plans, as detailed by Ge Zhihao (Gé Zhìhào 葛志昊), paint a clear picture: a determined and well-funded effort to enhance social welfare across the board in China.

With substantial financial backing and targeted initiatives, especially the concerted push for a comprehensive and rapidly developing childcare subsidy system, the focus is firmly on improving the livelihoods and well-being of its citizens from the youngest to the oldest.

These measures, particularly the accelerated development and implementation of the childcare subsidy system, are vital cogs in China’s ongoing strategy for balanced, sustainable, and people-centric social development.

References

• Jiemian News
• Ministry of Foreign Affairs of the People’s Republic of China
• State Council Information Office, The People’s Republic of China