The State Council, or China's cabinet, said Wednesday that a new pension program will be launched next month to benefit unemployed urban residents, Xinhua reported.

According to a State Council meeting presided over by Premier Wen Jiabao,?the social pension system will be implemented in 60 percent of China's cities and townships by the end of this year before being introduced nationwide next year.

All unemployed urban residents over the age of 16 are eligible for the program, a government statement released after the meeting said. Students are not included in the program.

The program will help create full coverage for China's basic social pension system, the statement said.

Funds for the program will be partially raised by taxes, as well as government subsidies, according to the statement.

Insured residents over the age of 60 will be able to receive a basic monthly pension of 55 yuan after paying feeds to join the program. Other urban residents will receive monthly endowments of varying amounts according to price fluctuations and the economic status of the areas they live in, according to the statement.

China experimented with a similar pension program for rural citizens in 2009.

Under the rural pension system, which is still being operated on a trial basis, rural residents over the age of 60 can receive a monthly pension of 55 yuan.

China plans to expand its rural pension program to 60 percent of its rural areas this year.