(Yicai Global) July 29 -- The Chinese city of Panzhihua, known for its iron and steel industry, has become the first in the country to introduce cash subsidies to encourage families to have more than one child following the introduction of the nation’s three-child policy two months ago.

Located in southwestern Sichuan province, Panzhihua brought out a series of childbirth support measures yesterday, including a monthly allowance of CNY500 (USD77) for each second and third child until they are three years old. Local families raising three kids can receive CNY36,000 (USD5,560) over the period.

The central government announced the three-child policy on May 31 in a bid to raise the birthrate in an aging society. It allows couples to have a third child and follows a two-child limit, implemented at the start of 2016, that failed to substantially boost the numbers of children being born.

To help parents, the government set out a raft of measures last month, ranging from tax breaks to more nurseries and flexible work leave.

If both parents have household registration in Panzhihua and their second or third child was born on or after June 12 this year, they qualify for the cash handouts, a local health official said at a press conference yesterday. The city government did not say when the first payments will start.

The city, rich in mineral resources and major steel hub in the province, is facing pressure as China transforms its economic structure. Its population has dropped almost 0.2 percent to 1.2 million since 2010, according to last year’s national population census.

With the new measures, Panzhihua hopes to boost its numbers to 1.5 million by 2025, according to its development plan. The city has also issued a series of incentives including employment subsidies and housing security to attract talent from outside.

Editor: Futura Costaglione