"We will provide mothers with the opportunity for part-time work after they use up the normal paid maternity leave of 16 weeks," he told a press briefing.
He was launching his government's initiative titled Program on Protection of Family and Dynamic Population Structure at Ankara Palace in the capital, Ankara.
Davutoglu said that working mothers can work part-time for two months if they have one child, four months for two children and six months for three or more children and will receive full pay after they take their maternity leave.
The prime minister stressed that both parents will have the right to work part-time for up to 30 hours until their children reach school age.
He said parents can take longer leaves of absence in cases of premature labor and adoption of children up to 1 year old, and fathers can use the remaining parental leave of the mother if she dies in childbirth.
Davutoglu also stated that they will reform paternity leave in the Labor Law and grant male employees the right to take five days leave if their wives give birth to a child.
"We will directly pay the mother 300 Turkish lira for one child, 400 Turkish lira for two children and 600 Turkish lira for three children," he said.
The premier said they will also work to increase number of nurseries and provide tax incentives for more of them to open.
"The municipalities will be obliged to open day nurseries," he said.
In order to promote marriage among the youth, Davutoglu said they will open a savings account for parents called a dowry account. They will be able to deposit money into the account that will be activated when the children reaches 18 years old.
"The government will contribute around 15 percent to this account," he added.
The prime minister also said they will launch premarital education programs for young people.