Parents planning to have more than one child will be eligible for subsidies —7,000 yuan ($970) for the second child and 25,000 yuan for the third — under a plan issued by the Hangzhou Municipal Health Commission on Monday.

The plan will take effect on Sept 10.

The subsidies help reimburse the cost of a mother's healthcare during pregnancy, childbirth and postpartum rehabilitation, along with the later costs of infant care, child-rearing and nursery services.

The subsidies aim to relieve the financial burden of children, while encouraging people to have more to increase the city's birthrate.

Cash subsidies will be paid in two installments, one for maternity and the other for childcare.

For the maternity subsidies, mothers who are pregnant with a second child will be given 2,000 yuan, while those who are pregnant with a third child can apply for 5,000 yuan.

Under the plan, the application period for maternity subsidies starts 24 weeks after pregnancy occurs and runs until 180 days after the baby is born.

Eligibility for a subsidy requires that mothers be registered as permanent residents of Hangzhou.

For childcare payments, a one-time subsidy of 5,000 yuan will be provided to families with a second child, while 20,000 yuan will be provided for those with a third.

The application deadline in those cases is within 180 days after the birth of the second or third child to be registered as a permanent resident of Hangzhou.

Fang Xiaoying contributed to this story.