Central Government Employees To Get Revised Children’s Education Allowance And Hostel Subsidy

One of the most significant investments parents can make in their children is an education. For families, however, the expense of school fees and associated costs can be a major financial strain. The government offers some benefits to the employee”s children including children’s education allowance, hostel expenditure allowance, and tax deduction on tuition fees.

As a part of a broader initiative by the Centre to enhance various allowances for central government employees, the children’s education allowance and hostel subsidy have been revised by 25 percent. The revision will come into effect from January 1, 2024.

The revision is by the 2018 directive that stipulates a 25 percent automatic increase in the limits of children’s education allowance and hostel subsidy upon the revision of dearness allowance by 50 percent. Recently, the central government raised the dearness allowance (DA) and dearness relief (DR) of employees by 4 percent – taking DA from 46% to 50%, the 2018 directive came into motion automatically.

The Department of Personnel ordered that the ministry fixed the reimbursement amount for children’s education allowance at Rs 2812.5 per month and hostel subsidy at Rs 8,437.5 per month, irrespective of the actual expenses incurred by the employees.

Additionally, for Divyang children of the central government employees, the education allowance will be 5,625 per month, and a special allowance for child care of Rs 3,750 to women with disabilities to provide additional support to women employees.

The Center has also revised several other important allowances which include risk allowance, night duty allowance, overtime allowance, special payment payable to Parliament assistants, and special allowance for child care for women with disabilities.