Revised Education Allowance and Hostel Subsidy Limits for Central Government Employees

The Centre has revised the education allowance and hostel subsidy limits for its employees, following the increase in dearness allowance. The education allowance is Rs 2,812.5 per month, while the hostel subsidy is Rs 8,437.5 per month, irrespective of actual expenses. For divyang children, the education allowance is Rs 5,625 per month, and the special allowance for child care to women with disabilities is Rs 3,750 per month. The revisions are effective from January 1, 2024.

The Centre has revised the limits of children's education allowance and hostel subsidy for its employees, according to a personnel ministry order.

The move comes following the enhancement of dearness allowance with effect from January 1, 2024.

Citing a 2018 directive, it said the order provides that the limits of children's education allowance and hostel subsidy would be automatically raised by 25 per cent every time the dearness allowance on the revised pay structure goes up by 50 per cent.

The ministry said references are being received from various quarters about the amount of children's education allowance (CEA) and the hostel subsidy admissible consequent upon enhancement of dearness allowance payable to the central government employees at the rate of 50 per cent with effect from January 1, 2024, announced by the finance ministry on March 12, 2024.

Accordingly, the amount for reimbursement of children's education allowance shall be Rs 2,812.5 per month (fixed) and hostel subsidy shall be Rs 8,437.5 per month (fixed) irrespective of actual expenses incurred by the government employees, said the personnel ministry's latest order.

The reimbursement of children's education allowance for divyang children of government employees shall be payable at double the normal rates -- Rs 5,625 per month (fixed) -- irrespective of actual expenses incurred by the government employee, it said.

The rates of special allowance for child care to women with disabilities stand revised to Rs 3,750 per month, according to the order issued to all central government ministries.

''These revisions are applicable with effect from January 1, 2024,'' it added.

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