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“Have More Kids, Get a Pay Raise!” — This Indian State Offers ₹3 Lakh and 1-Year Maternity Leave to Boost Birth Rates
Siddhi Jain | June 10, 2025 12:15 AM CST

In a bold move to counter declining birth rates, Indian states are introducing unconventional incentives to encourage families to have more children. Andhra Pradesh’s Chief Minister, N. Chandrababu Naidu, recently sparked national debate by proposing financial rewards for families with more children. But long before this proposal, Sikkim had already put such plans into action.

Yes, you read that right — in Sikkim, government employees can receive a salary increment, a year of maternity leave, paternity leave, and even ₹3 lakh for IVF treatment.

Andhra Pradesh: The Latest to Join the Birth Rate Debate

In an interview with The Times of India, CM Naidu shared concerns over Andhra Pradesh's low birth rate. He said southern states should rethink their demographic policies and suggested introducing cash incentives for larger families. While this idea is under consideration, it's not new to India.

Several states have already launched similar schemes — with Sikkim leading the way.

Sikkim’s Unique Strategy: The More Children, The More Benefits

In 2023, Sikkim CM Prem Singh Tamang announced a set of benefits for women government employees who choose to have more children:

  • Salary Increments: Women employees who give birth to more than two children receive additional increments in their pay.

  • Extra Benefits for the Fourth Child: Mothers receive another increment if they give birth to a fourth child.

  • Extended Maternity Leave: New mothers are entitled to a full year of maternity leave.

  • Paternity Leave: Fathers get one month off to support their partners.

  • Childcare Support: The government also steps in to help with parenting. Women are hired as caregivers at ₹10,000/month to assist working mothers.

IVF Support: ₹3 Lakh for Fertility Treatments

Not every couple finds it easy to grow their family — and Sikkim recognizes that too. Under its Mission Vatsalya scheme, families facing fertility challenges can get up to ₹3 lakh for IVF treatment.

For families living below the poverty line (BPL), the state has also introduced:

  • Shishu Suraksha Scheme and Sutkeri Sahayata Yojana

  • ₹3,000 immediately after the birth of a daughter

  • ₹500/month until the girl turns 6

  • Applicable for up to two daughters per family

Why These Measures Are Necessary

Sikkim has the lowest birth rate in India, with a total fertility rate of just 1.1 — well below the national average. The population of several ethnic groups such as the Bhutia and Limbu communities has been consistently declining.

With fewer births, concerns about an aging population and shrinking workforce are growing. The CM has expressed concern multiple times, leading to the rollout of these population-boosting schemes.

Other states are beginning to follow suit:

  • In Mizoram, Minister Robert Romawia announced that the family with the most children in his constituency would receive a ₹1 lakh reward.

  • Tamil Nadu CM M.K. Stalin has also publicly urged citizens to consider having more children.

Final Thoughts

While most population policies focus on controlling overpopulation, a new demographic challenge has emerged in parts of India — not enough births. As some states age faster than others, governments are now rewarding parenthood with cash, time off, and medical assistance.

If more states follow the Sikkim model, “family planning” in India might take on a whole new meaning.


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