diff --git a/payroll/methods/payslip_calc.py b/payroll/methods/payslip_calc.py
index 7e137206e..01effaf8a 100644
--- a/payroll/methods/payslip_calc.py
+++ b/payroll/methods/payslip_calc.py
@@ -360,6 +360,9 @@ def calculate_allowance(**kwargs):
             no_tax_allowances_amt.append(amount)
 
         else:
+            print("===========================")
+            print(allowance.based_on)
+            print()
             calculation_function = calculation_mapping.get(allowance.based_on)
             amount = calculation_function(
                 **{
@@ -972,6 +975,29 @@ def calculate_based_on_work_type(*_args, **kwargs):
     return amount
 
 
+def calculate_based_on_children(*_args, **kwargs):
+    """
+    Calculates the amount of an allowance or deduction based on the attendance of an employee.
+
+    Args:
+        employee (Employee): The employee for whom the attendance is being calculated.
+        start_date (date): The start date of the attendance period.
+        end_date (date): The end date of the attendance period.
+        component (Allowance or Deduction): The allowance or deduction object.
+        day_dict (dict): Dictionary containing working day details.
+
+    Returns:
+        float: The calculated amount of the component based on the attendance.
+    """
+    employee = kwargs["employee"]
+    component = kwargs["component"]
+    day_dict = kwargs["day_dict"]
+    count = employee.children
+    amount = count * component.per_children_fixed_amount
+    amount = compute_limit(component, amount, day_dict)
+    return amount
+
+
 calculation_mapping = {
     "basic_pay": calculate_based_on_basic_pay,
     "gross_pay": calculate_based_on_gross_pay,
@@ -981,4 +1007,5 @@ calculation_mapping = {
     "shift_id": calculate_based_on_shift,
     "overtime": calculate_based_on_overtime,
     "work_type_id": calculate_based_on_work_type,
+    "children": calculate_based_on_children,
 }
diff --git a/payroll/models/models.py b/payroll/models/models.py
index cd409f29a..213fa0a7a 100644
--- a/payroll/models/models.py
+++ b/payroll/models/models.py
@@ -689,6 +689,7 @@ class Allowance(HorillaModel):
         ("shift_id", _("Shift")),
         ("overtime", _("Overtime")),
         ("work_type_id", _("Work Type")),
+        ("children", _("Children")),
     ]
 
     if_condition_choice = [
@@ -792,6 +793,14 @@ class Allowance(HorillaModel):
         validators=[min_zero],
         help_text=_("The attendance fixed amount for one validated attendance"),
     )
+    # If based on children
+    per_children_fixed_amount = models.FloatField(
+        null=True,
+        blank=True,
+        default=0.00,
+        validators=[min_zero],
+        help_text=_("The fixed amount per children"),
+    )
     # If based on shift
     shift_id = models.ForeignKey(
         EmployeeShift,
@@ -966,7 +975,8 @@ class Allowance(HorillaModel):
             raise ValidationError(
                 _("If based on is work type, then work type must be filled.")
             )
-
+        if self.based_on == "children" and not self.per_children_fixed_amount:
+            raise ValidationError(_("The amount per children must be filled."))
         if self.is_fixed and self.amount < 0:
             raise ValidationError({"amount": _("Amount should be greater than zero.")})
 
diff --git a/static/build/js/allowanceWidget.js b/static/build/js/allowanceWidget.js
index 044e4dd74..15a7ed85c 100644
--- a/static/build/js/allowanceWidget.js
+++ b/static/build/js/allowanceWidget.js
@@ -57,7 +57,24 @@ function conditionalVisibility() {
       "#id_per_attendance_fixed_amount, [for='id_per_attendance_fixed_amount']"
     ).parent().hide();
   }
-
+  if (
+    $("#id_based_on").val() == "children" &&
+    !$("#id_is_fixed").is(":checked")
+  ) {
+    $(
+      "#id_per_children_fixed_amount, [for='id_per_children_fixed_amount']"
+    ).show();
+    $(
+      "#id_per_children_fixed_amount, [for='id_per_children_fixed_amount']"
+    ).parent().show();
+  } else {
+    $(
+      "#id_per_children_fixed_amount, [for='id_per_children_fixed_amount']"
+    ).hide();
+    $(
+      "#id_per_children_fixed_amount, [for='id_per_children_fixed_amount']"
+    ).parent().hide();
+  }
   if (
     $("#id_based_on").val() == "shift_id" &&
     !$("#id_is_fixed").is(":checked")