The Department of Personnel and Training (DoPT) has issued a revised order regarding the Children Education Allowance (CEA) and Hostel Subsidy for central government employees.
While the allowance amounts remain unchanged, the department has clarified an important rule about how hostel expenses will be reimbursed.
The update aims to remove confusion created by the earlier order issued in April 2024.
What Has Changed?
According to the corrigendum issued through an Office Memorandum dated June 30, 2026, the Hostel Subsidy will now be reimbursed as:
₹8,437.50 per month per child, or
The actual boarding and lodging expenses paid by the employee, whichever is lower.
This is different from the April 2024 order, which stated that the hostel subsidy would be paid as a fixed amount regardless of the actual expenses.
The new clarification makes it clear that employees cannot claim more than the amount they actually spend on hostel boarding and lodging, even though the maximum reimbursement limit remains the same.
Children Education Allowance Remains Unchanged
The DoPT has confirmed that there is no change in the reimbursement rules for the Children Education Allowance.
Eligible central government employees will continue to receive ₹2,812.50 per month per child as a fixed reimbursement, regardless of the actual education expenses.
The corrigendum only changes the reimbursement method for the Hostel Subsidy and does not revise any allowance rates.
Current Allowance Rates
The applicable rates continue to remain the same:
Children Education Allowance (CEA): ₹2,812.50 per month per child (fixed).
Hostel Subsidy: Up to ₹8,437.50 per month per child or actual boarding and lodging expenses, whichever is lower.
CEA for Divyang children: ₹5,625 per month per child.
Special Allowance for Child Care (for women employees with disabilities): ₹3,750 per month.
These rates have been effective from January 1, 2024, after the Dearness Allowance (DA) was increased to 50%.
Other Rules Will Continue
The DoPT has clarified that this corrigendum does not change any other rules related to Children Education Allowance or Hostel Subsidy.
All other terms and conditions mentioned in the Office Memorandums dated July 17, 2018, and April 25, 2024, will continue to remain in force.
Why Were These Allowances Revised?
The increase in CEA and Hostel Subsidy announced in April 2024 was based on an automatic revision rule introduced by the DoPT in July 2018.
Under this rule, the limits of both allowances automatically increase by 25% whenever Dearness Allowance reaches 50% under the revised pay structure.
After the Ministry of Finance raised DA to 50% with effect from January 1, 2024, the DoPT revised the allowance limits accordingly.
The latest order does not increase the allowance amounts further.
It only clarifies that Hostel Subsidy will be reimbursed based on the actual hostel expenses incurred, subject to the maximum limit of ₹8,437.50 per month per child.
