New Revised Rate for Children Education Allowance is increased to Rs.2813 PM from 1.1.2024
As per the revised guidelines, the Central Government has updated the rates of Children Education Allowance (CEA) and Hostel Subsidy for its employees. Additionally, new rates of CEA have been published for those who have Divyang Children. These changes, in accordance with the 7th pay commission recommendations, are effective from 1st January 2024. The adjustment in rates is triggered by the increase in Dearness Allowance, which has now reached a significant 50% mark.
| Component | Existing Rate | Revised Rate (1.1.2024) |
| Children Education Allowance | Rs. 2250 | Rs. 2813 |
| Hostel Subsidy | Rs. 6750 | Rs. 8438 |
| CEA to Divyang children | Rs. 4500 | Rs. 5625 |
CEA is one of the most significant non-monetary benefits available to Central Government employees!
Children Education Allowance (CEA) and Hostel Subsidy Rates 2024: The credit for the establishment of the Children Education Allowance (CEA) primarily goes to the 6th Pay Commission which recommended this beneficial scheme for central government employees back in 2006. The CEA serves as a commendable initiative aimed at nurturing the younger generation with quality education, thereby contributing to the overall advancement of society.
This allowance is specifically designed to support government employees who have school-going children, ranging from Nursery to class 12. By providing financial assistance for the education of their children, the CEA plays a crucial role in ensuring that these young minds have access to educational resources and opportunities that will shape their future.
| Topic | Children Education Allowance |
| Beneficiaries | Central Government Employees |
| Benefits | CEA & Hostel Subsidy |
| CEA Rate | |
| HS Rate | |
| Category | Employees News |
| Home Page | Click Here |
Children Education Allowance 2024 PDF
New Rates of Children Education Allowance Effective 1.1.2024
The Children Education Allowance and Hostel Subsidy will receive a 25% automatic increase when the Dearness Allowance on the revised pay structure rises by 50%. Recent inquiries have been made from various sources regarding the potential enhancement of the Children Education Allowance (CEA) and Hostel Subsidy amounts following the 50% Dearness Allowance hike for Central Government employees effective from January 1, 2024. This adjustment was officially announced in the Ministry of Finance, Department of Expenditure O.M. No. 1/1/2024-E-II (B) dated March 12, 2024.
The reimbursement for Children Education Allowance is set at Rs. 2812.5 per month (fixed), and Hostel Subsidy at Rs. 8437.5 per month (fixed), regardless of the actual expenses incurred by the Government employee.
The Children Education Allowance reimbursement for Divyang children of Government employees will be paid at twice the standard rates, i.e., Rs. 5625 per month (fixed), irrespective of the actual expenses incurred by the Government employee.
The above revisions are applicable with effect from 1st January 2024.
Eligibility Criteria for Children Education Allowance 2024
All Central Government employees are entitled to receive this allowance, which covers the reimbursement of expenses for educational purposes for their children. Those who have school-going children are eligible to claim the allocated amount to support their children’s education, ensuring that they have access to the resources they need to thrive academically.
Claiming Procedure of Children Education Allowance 2024
The claiming procedure has been streamlined into a more straightforward process. To begin, you simply need to acquire a bonafide certificate from the school your child is currently attending. This certificate is provided by the school authority, principal, or Headmaster and includes detailed information about your child. Bonafide certificates serve a variety of purposes, from educational and employment to residential and travel-related needs.
Acting as a verification document, they establish the credibility and legitimacy of an individual’s relationship with the issuing organization. Whether it’s applying for scholarships, securing education loans, participating in conferences, proving residence for students in hostels or rented accommodations, verifying employment, or facilitating travel documentation for visas and passports, the bonafide certificate plays a crucial role in ensuring transparency and reliability across different contexts.
Tax Exemption on Children Education Allowance 2024
The Indian tax laws provide a valuable exemption for salaried taxpayers to support their children’s education and hostel expenses. Under this provision, a salaried individual can claim the Children’s Education Allowance of INR 100 per month per child, with a limit of 2 children. Additionally, there is the Hostel Expenditure Allowance of INR 300 per month per child, also capped at 2 children. These exemptions aim to ease the financial burden on taxpayers and encourage investment in their children’s education and well-being.
Hostel Subsidy Rates and Eligibility Conditions
Reimbursement of Children Education Allowance (CEA) and Hostel Subsidy is applicable for students from nursery to twelfth grade, including eleventh and twelfth grades offered by junior colleges or schools affiliated with Universities or Boards of Education. The reimbursement for CEA/Hostel Subsidy can only be claimed for the two eldest surviving children, except in cases where the birth of the second child results in twins or multiple births. If a sterilization operation fails, CEA/Hostel Subsidy will be granted for children born after the first instance of such failure exceeding the usual two-child limit.
Hostel subsidy applies only to children enrolled in residential educational institutions located at least 50 kilometers away from the Government servant’s residence. The reimbursement for lodging and boarding expenses, capped at Rs.6,750, or the actual expenditure, whichever is lower, will be provided to the employee as Hostel Subsidy. Both Hostel Subsidy and Children Education Allowance can be claimed simultaneously. If both spouses are Government servants, only one of them can avail reimbursement for Hostel Subsidy and Children Education Allowance. Hostel subsidy is eligible only for children attending residential educational institutions situated at least 50 km from the officer’s residence.
What is Bonafide Certificate and How to get?
A Bonafide Certificate is a necessary document for the purpose of claiming reimbursement under the Children’s Education Allowance (CEA) scheme. It is mandatory for all central government employees to procure this certificate from the educational institution where their child is enrolled.
A bonafide certificate serves as an official verification of an individual’s identity and association with an educational organization. Typically, academic institutions such as schools, colleges, or polytechnic issue this document to confirm a student’s enrollment status. The certificate usually displays the logo of the issuing authority at the top.
To obtain a bonafide certificate, students can approach the administrative office responsible for processing such requests at their respective educational institution.