The value of the handouts was unspecified but the statement late on Wednesday said the plan will put cash in the hands of extremely poor people, orphans and those in difficulty.

The allowances are to be paid before October 1 when China begins a week-long public holiday to mark the 75th year of the founding of the People's Republic of China, the government said.

It called on regional civil affairs and finance departments to treat the initiative with "great importance" and to ensure distribution happens on time, saying the scheme showed the "concern and care" of the Chinese Communist Party and government for those in need.

Also late on Wednesday, China's cabinet issued guidelines on promoting high-quality and sufficient employment, pledging to prioritise employment and improve reasonable salary growth in response to steep pay cuts and soaring youth joblessness.

This week, the world's second-largest economy unveiled some of its most aggressive measures to support the economy.