The Niue Government has begun paying $US1437 dollars to the parents of new born babies on the island.
The government says through its Grant for Newborn Infants it wants to offer support for families during the first few months of a child's life.
At the same time it hopes to boost the island's flagging population.
The money, paid in four fortnightly instalments, goes to Niueans or those with permanent residency.
It takes 10 years of residency in Niue to achieve permanent residency for non-Niueans.