Jul 19, 2018

7th Pay Commission – Children Education Allowance (CEA) And Hostel Subsidy – DoPT Instructions




Recommendations of the 7th Pay Commission – Implementation of decisions relating to the grant of Children Education Allowance (CEA) and Hostel Subsidy – Consolidated instructions

No.A-27012/02/2017-Estt.(AL)
Government of India


Ministry of Personnel, Public Grievances and Pensions
Department of Personnel & Training

Block-IV. Old JNU Campus, New Delhi

Dated: 17th July 2018


Subject: Recommendations of the Seventh Central Pay Commission – Implementation of decisions relating to the grant of Children Education Allowance (CEA) and Hostel Subsidy – Consolidated instructions

Consequent upon the decisions taken by the Government to implement the recommendations made by the VII Central Pay Commission, this Department has issued an OM of even number dated 16-8-2017 revising the rates of CEA/Hostel Subsidy and simplifying the procedure for claiming reimbursement of the same. However this Department has been receiving various queries regarding CEA/Hostel Subsidy especially with regard to the applicability of various provision/instructions issued during sixth CPC regime/period. Further references have also been received regarding the difficulty being faced by some government employees in obtaining certificate of the Head of the Institution as mentioned in this Department’s OM of even number dated 16-8-2017.

2. Keeping in view the above, it has been decided to issue consolidated instructions in supersession of all earlier OMs on the subject of Children Education Allowance and Hostel subsidy as under:

a) The reimbursement of Children Education Allowance/Hostel subsidy can he claimed only for the two eldest surviving children with the exception that in case the second child birth results in twins/multiple birth. In case of failure of sterilization operation. the CEA/Hostel Subsidy would be admissible in respect of children bornout of the first instance of such failure beyond the usual two children norm.

b) The amount for reimbursement of Children Education allowance will he Rs.2250/-per month (fixed) per child. This amount of Rs.2250/- is fixed irrespective of the actual expenses incurred by the Govt. Servant. In order to claim reimbursement of CEA, the Govt. servant should produce a certificate issued by the Head of the Institution for the period/year for which claim has been preferred. The certificate should confirm that the child studied in the school during the previous academic year. In case such certificate can not he obtained, self- attested copy of the report card or self attested fee receipt(s) ( including e-receipt(s)) confirming/indicating that the fee deposited for the entire academic year can be produced as a supporting document to claim CEA. The period/year means academic year i.e. twelve months of complete academic session.

c) The amount of ceiling of hostel subsidy is Rs.6750/- pm. In order to claim reimbursement of Hostel Subsidy for an academic year, a similar certificate from the Head of Institution confirming that the child studied in the school will suffice, with additional requirement that the certificate should mention the amount of expenditure incurred by the Government servant towards lodging and boarding in the residential complex. In case such certificate cannot be obtained, self- attested copy of the report card and original fee receipt(s)/e-receipt(s) which should indicate the amount of expenditure incurred by the Government servant towards lodging and boarding in the residential complex can be produced for claiming Hostel Subsidy. The expenditure on boarding and lodging or the ceiling of Rs.6750/- as mentioned above, whichever is lower, shall be paid to the employee as Hostel Subsidy. The period/year will mean the same as explained above in clause (b) of this para.

d) The reimbursement of Children Education Allowance for Divyaang children of government employees shall be payable at double the normal rates of CEA prescribed above in clause (b) i.e. Rs.4500/- per month (fixed).

e) The above rates/ceiling would be automatically raised by 25% every time the Dearness Allowance on the revised pay structure goes up by 50%.

f) The Hostel Subsidy and Children Education Allowance can be claimed concurrently.

g) In case both the spouses are Government servants, only one of them can avail reimbursement under Children Education Allowance and Hostel Subsidy.

h) The reimbursement of CEA and Hostel Subsidy will he done just once in a financial year after completion of the financial year.

i) Hostel subsidy is applicable only in respect of the child studying in a residential educational institution located at least 50 kilometers from the residence of the Government servant.

j) The reimbursement of Children Education Allowance and Hostel Subsidy shall have no nexus with the performance of the child in his class. In other words, even if a child fails in a particular class. the reimbursement of Children Education Allowancelf-Iostel Subsidy shall not be stopped. However, if the child is admitted in the same class in another school, although the child has passed out of the same class in previous school or in the mid-session, CEA shall not be reimbursable.

Source - Gconnect