The move is part of a government recruitment drive to increase the number of midwives working in the NHS by 4000 over the next three years.
The 'golden hello' will partly be made up of benefits such as training, and help with childcare and transport costs. But it will also include a cash grant of up to £1,500.
The Department of Health and the Royal College of Midwives will launch the Return to Practice campaign in the summer.
Health secretary Alan Johnson said: "The number of births in England is rising. To keep pace with this increase and to improve the quality of care to mothers, we will recruit an additional 1000 midwives on our wards and in our communities by 2009, rising to around 4000 by 2012.
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