The Central Government provides Children Education Allowance (CEA) to government employees to help them meet the education expenses of their children. The benefit was revised following the implementation of the recommendations of the 7th Central Pay Commission (7th CPC).
Under the rules, a Central Government employee can claim Children Education Allowance and Hostel Subsidy for the two eldest surviving children.
The Children Education Allowance has been fixed at ₹2,250 per month per child. This allowance helps employees meet expenses related to their children’s education. Since the benefit is available for up to two eligible children, employees can claim it according to the applicable government rules.
Apart from CEA, the government also provides a Hostel Subsidy of ₹6,750 per month. This benefit is meant for eligible children who stay in a hostel while pursuing their education.
Special benefits are available for Divyang children of Central Government employees. The Children Education Allowance for a Divyang child is payable at double the normal rate, which means ₹4,500 per month.
The benefit is also available in certain cases where a Divyang child is unable to attend school and receives education or special education at home. In such cases, reimbursement can be provided at double the normal CEA rate. However, the employee has to provide the required payment receipt from the teacher or instructor along with self-certification confirming that the child is receiving education at home.
Another important feature of the scheme is the provision for automatic revision of the allowance. The CEA rate increases by 25% whenever Dearness Allowance (DA) under the revised pay structure increases by 50%. This provision helps revise the education benefit in line with increases in the cost of living.
The Children Education Allowance and Hostel Subsidy are available for eligible children studying from three classes before Class I up to Class XII, subject to the applicable rules.
Overall, Children Education Allowance is an important welfare benefit available to Central Government employees. It provides financial support for children’s schooling and also offers higher assistance for Divyang children and eligible children staying in hostels but this facility is not provided to Bank Employees.
Employees working in Government Banks are not provided the benefit of children education allowance. Most of the Public Sector Banks don’t have this allowance and employees are demanding government to introduce this allowance in Banks also.
OM No: A-27012/01/2022-Estt.(AL) Dated: 17/2/2023
OM No: A-27012/01/2023-Pers.Policy(Allowance) Dated: 14/3/2024
OM No: A-27012/02/2017-Estt.(AL) Dated: 17/7/2018
