7th Pay Commission Children Education Allowance and Hostel Subsidy for Central Government Employees
Children Education Allowance (CEA) & Hostel Subsidy (HS)
(The scheme before 6th CPC called as ‘Reimbursement of Tuition Fee’ – “Educational Assistance” to the wards of Central Government Employees)
The Children Education Allowance (CEA) and Hostel Subsidy (HS) are paid to Central Government employees to take care of school education and hostel facility of their children.
The great first step for the scheme started from the Second CPC. The 2nd Central Pay Commission recommended the scheme for Central Government employees, called “Reimbursement of Tuition Fee“. The educational assistance scheme was introduced and implemented with effect from March 1962.
The scheme was modified by the 3rd Pay Commission and also further liberalized by the 4th and 5th Pay Commission. At last, the 6th Pay Commission given a high priority to this scheme. Recommendations on this scheme were most welcome by the employees working under Central Government. The Central Government also accepted the recommendations and implemented with effect from September 2008.
Recommendations of 7th CPC on Children Education Allowance & Hostel Subsidy
We all know very well the recommendations of 7th CPC on CEA and HS has bee approved by the Government and implemented with effect from 1st July 2017. The CEA increased from the existing level of Rs. 1500 to Rs. 2250 with the multiplication factor 1.5. And the HS also revised from Rs. 4500 to Rs. 6750.
7th CPC Recommendations and Government Decisions
- The revised rates and procedures are applicable with effect from 1.7.2017.
- The amount of CEA fixed per child Rs. 2250 per month.
- The amount of HS fixed per child Rs. 6750 per month.
- Both are Government servants, only one of them can avail reimbursement.
- The rates automatically raised by 25% every time the Dearness Allowance (DA) reaches 50%.
- CEA & HS is doubled for differently-abled children.
- Reimbursement allowed only after completion of the Financial Year.
- A bonafide certificate from school studied during the previous academic year for CEA.
- A bonafide certificate with detailed expenditure for lodging and boarding for HS.
- CEA and HS Scheme is also applicable for Railway Employees.
- CEA is applicable for children from class nursery to twelfth, including classes 11th and 12th held by Junior Colleges or schools affiliated to Universities or Boards of Education.
- CEA can be claimed only for the two eldest surviving children with the exception that in case the second childbirth results in twins/multiple births.
- The residential educational institution located at least 50 kilometers from the residence of the Government servant.
- Annual amount of CEA for the academic year 2017-18 will be Rs. 24,750 and Hostel Subsidy will be Rs. 74,250.
- The commission has strongly object to extend the allowance beyond Class XII.
- There is no time limit of claiming CEA & HS.
- The Central Govt issued orders, rules, and clarification from time to time in this regard.
- CEA and HS application forms are available for download as word and pdf format
CEA and HS Forms pdf Download
6th and 7th CPC Rates of Children Education Allowance and Hostel Subsidy
The rates were applicable for reimbursement of the tuition fee in the 6th pay commission, Rs. 40 per month for Class1st to 10th and Rs. 50 per month for class 11th and 12th Standard per child. And for disabled and mentally retarded children, Rs. 100 for 1st to 12th Standard. Hostel Subsidy for children Rs. 300 from class 1st to 12th Std.
In the 6th CPC, the rates of CEA increased to Rs. 1000 per month per child (Rs. 12000 per year). And Hostel Subsidy also increased to Rs. 3000 per month per child (Rs. 36000 per year). The rates automatically increased by 25% whenever Dearness allowance (DA) goes up by 50%.
The first revision of CEA and HS in January 2011, when the rate of Dearness allowance increased to 51%, and the second revision held in January 2014. The rate of CEA and HS revised two times and increased to Rs.1500 and Rs. 4500 respectively.
How to get CEA (Rs. 54,000 per year)?
Central Government accepted the recommendation of the 7th pay Commission on Children Education Allowance without any change. A Central Government employee can claim the school fee and other expenses for two children. [Click to read continue]
FAQ on CEA and Hostel Subsidy
- REIMBURSEMENT CEA & HS – CLARIFICATION ON LEAVE OR SUSPENSION
The Children Education Allowance or hostel subsidy shall be admissible to a Govt. servant while he/she is on duty…
- CLASS ELIGIBILITY OF CEA & HS
Reimbursement of CEA and Hostel Subsidy shall be applicable for children from class nursery to twelfth…
- UPPER AGE LIMIT FOR CEA & HS
The upper age limit for Divyaang children has been set at 22 years…
- REIMBURSEMENT OF CEA & HS – IN CASE OF RETIREMENT…
In case of retirement, discharge, dismissal or removal from service, clarification given…
- CEA CLARIFICATION – IF A GOVERNMENT SERVANT DIES…
If a Government servant dies while in service, the Children Education Allowance or hostel subsidy…
- CLARIFICATION ON CEA – CHILD FAILS IN A PARTICULAR CLASS
The reimbursement of Children Education Allowance and Hostel Subsidy shall have no nexus…
- CEA & HS – DISTANCE OF RESIDENTIAL EDUCATIONAL INSTITUTION
Clarification on distance for Residential Educational Institution studied children’s reimbursement…
- REIMBURSEMENT OF CEA & HS – BOTH ARE GOVERNMENT SERVANTS
Clarification on Husband and wife both are Government Servants, reimbursement…
- CEA & HS – PERIOD FOR REIMBURSEMENT
Quaterly, Half-Yearly or Annual reimbursement of Children Education Allowance…
- REIMBURSEMENT OF CEA & HS – DA IMPACT
Increasing DA over 25%, the amount of Children Education Allowance…
- REIMBURSEMENT OF CEA & HS – FOR DIVYAANG CHILDREN
Eligibility criteria of a Divyaang Children for reimbursement of CEA…
- REIMBURSEMENT OF HOSTEL SUBSIDY – ELIGIBILITY OF AMOUNT
The amount of ceiling of hostel subsidy is…
- REIMBURSEMENT OF CEA & HS – ELIGIBILITY OF AMOUNT
Eligibility amount of a Children for reimbursement of CEA…
- REIMBURSEMENT OF CEA & HS – ELIGIBILITY OF CHILDREN
In case of failure of sterilization operation,…
- CEA & HS PAYABLE FOR CITIZENS OF NEPAL AND BHUTAN – CLARIFICATION
- CEA is payable for the children of all Central Government employees including citizens of Nepal and Bhutan…
Children Education Allowance – An Overview
The Children Education allowance was introduced by the 6th pay commission with effect from 1.9.2008. In the background of escalation of school fees, and other expenses connected with education of Children, the present scheme has been a big relief for the Government employees.
Presently the allowance is admissible for two children, for studying in a recognized school up to XII standard. The maximum ceiling is stipulated at Rs.18000/- since this allowance had been hiked by 50% because of the DA component in salary having been crossed 100% on 1.1.2014. We suggest doubling of this allowance and increasing the same by 50 % whenever the DA crosses over by 50%
The insistence of receipt for each and every expense to claim the allowance is a cumbersome procedure, which serves no purpose at all. In order to avoid a probable misuse, the employer may be asked to produce an affidavit to the effect this child/children were a bonafide students of the school. The production of receipt may be dispensed with.
We also suggest that the scheme may be extended to cover children studying for Graduate/Post Graduate and Professional courses. This suggestion is being made in view of the huge expenses involved for the children’s higher studies, especially in the background of the Government with… from the “higher education sector and allowing private institutions to come up and extract exorbitant changes for … courses.
Since the quantum of allowance is fixed with a ceiling on maximum, our suggestion … increase the coverage.