No.A-27012/02/2017-Estt.(AL)
Government of India
Ministry of Personnel, Public Grievances and Pensions
Department of Personnel & Training

Block-IV. Old JNU Campus, New Delhi

Dated: 17th July 2018

Office Memorandum

Subject: Recommendations of the Seventh Central Pay Commission – Implementation of decisions relating to the grant of Children Education Allowance (CEA) and Hostel Subsidy – Consolidated instructions

Consequent upon the decisions taken by the Government to implement the recommendations made by the VII Central Pay Commission, this Department has issued an OM of even number dated 16-8-2017 revising the rates of CEA/Hostel Subsidy and simplifying the procedure for claiming reimbursement of the same. However this Department has been receiving various queries regarding CEA/Hostel Subsidy especially with regard to the applicability of various provision/instructions issued during sixth CPC regime/period. Further references have also been received regarding the difficulty being faced by some government employees in obtaining certificate of the Head of the Institution as mentioned in this Department’s OM of even number dated 16-8-2017.

2. Keeping in view the above, it has been decided to issue consolidated instructions in supersession of all earlier OMs on the subject of Children Education Allowance and Hostel subsidy as under:

a) The reimbursement of Children Education Allowance/Hostel subsidy can he claimed only for the two eldest surviving children with the exception that in case the second child birth results in twins/multiple birth. In case of failure of sterilization operation. the CEA/Hostel Subsidy would be admissible in respect of children bornout of the first instance of such failure beyond the usual two children norm.

b) The amount for reimbursement of Children Education allowance will he Rs.2250/-per month (fixed) per child. This amount of Rs.2250/- is fixed irrespective of the actual expenses incurred by the Govt. Servant. In order to claim reimbursement of CEA, the Govt. servant should produce a certificate issued by the Head of the Institution for the period/year for which claim has been preferred. The certificate should confirm that the child studied in the school during the previous academic year. In case such certificate can not he obtained, self- attested copy of the report card or self attested fee receipt(s) ( including e-receipt(s)) confirming/indicating that the fee deposited for the entire academic year can be produced as a supporting document to claim CEA. The period/year means academic year i.e. twelve months of complete academic session.

c) The amount of ceiling of hostel subsidy is Rs.6750/- pm. In order to claim reimbursement of Hostel Subsidy for an academic year, a similar certificate from the Head of Institution confirming that the child studied in the school will suffice, with additional requirement that the certificate should mention the amount of expenditure incurred by the Government servant towards lodging and boarding in the residential complex. In case such certificate cannot be obtained, self- attested copy of the report card and original fee receipt(s)/e-receipt(s) which should indicate the amount of expenditure incurred by the Government servant towards lodging and boarding in the residential complex can be produced for claiming Hostel Subsidy. The expenditure on boarding and lodging or the ceiling of Rs.6750/- as mentioned above, whichever is lower, shall be paid to the employee as Hostel Subsidy. The period/year will mean the same as explained above in clause (b) of this para.

d) The reimbursement of Children Education Allowance for Divyaang children of government employees shall be payable at double the normal rates of CEA prescribed above in clause (b) i.e. Rs.4500/- per month (fixed).

e) The above rates/ceiling would be automatically raised by 25% every time the Dearness Allowance on the revised pay structure goes up by 50%.

f) The Hostel Subsidy and Children Education Allowance can be claimed concurrently.

g) In case both the spouses are Government servants, only one of them can avail reimbursement under Children Education Allowance and Hostel Subsidy.

h) The reimbursement of CEA and Hostel Subsidy will he done just once in a financial year after completion of the financial year.

i) Hostel subsidy is applicable only in respect of the child studying in a residential educational institution located at least 50 kilometers from the residence of the Government servant.

j) The reimbursement of Children Education Allowance and Hostel Subsidy shall have no nexus with the performance of the child in his class. In other words, even if a child fails in a particular class. the reimbursement of Children Education Allowancelf-Iostel Subsidy shall not be stopped. However, if the child is admitted in the same class in another school, although the child has passed out of the same class in previous school or in the mid-session, CEA shall not be reimbursable.

k) If a Government servant dies while in service, the Children Education Allowance or hostel subsidy shall be admissible in respect of his/her children subject to observance of other conditions for its grant provided the wife/husband of the deceased is not employed in service of the Central Govt., State Government, Autonomous body, PSU, Semi Government Organization such as Municipality, Port Trust Authority or any other organization partly or fully funded by the Central Govt./State Governments. In such cases the CEA/Hostel Subsidy shall be payable to the children till such time the employee would have actually received the same, subject. to the condition that other terms and conditions are fulfilled. The payment shall be made by the office in which the Government servant was working prior to his death and will he regulated by the other conditions, laid down in this OM.

I) In case of retirement, discharge. dismissal or removal from service. CEA/Hostel Subsidy shall he admissible till the end of the academic year in which the Government servant ceases to be in service due to retirement. discharge, dismissal or removal from service in the course of an academic year. The payment shall be made by the office in which the government servant worked prior to these events and will be regulated by the other conditions laid down in this OM.

m) The upper age limit for Divyaang children has been set at 22 years. In the case of other children the age limit will be 20 years or till the time of passing 12th class whichever is earlier. There shall be no minimum age.

n) Reimbursement of CEA and Hostel Subsidy shall be applicable for children from class nursery to twelfth, including classes eleventh and twelfth held by Junior Colleges or schools affiliated to Universities or Boards of Education.

o) CEA is allowed in case of children studying through “Correspondence or Distance Learning” subject to other conditions laid down herein.

p) The CEA and Hostel Subsidy is admissible in respect of children studying from two classes before class one to 12’x’ standard and also for the initial two years of a diploma/certificate course from Polytechnic/ITI/Engineering College, if the child pursues the course after passing 10th standard and the Government servant has not been granted CEA/Hostel Subsidy in respect of the child for studies in 11th and 12th standards.

q) In respect of schools/institutions at nursery, primary and middle level not affiliated to any Board of education, the reimbursement under the Scheme may be allowed for the children’studying in a recognized school/institution. Recognized school/institution in this regard means a Government school or any education institution whether in receipt of Govt. Aid or not. recognized by the Central or State Government or Union Territory Administration or by University or a recognized educational authority having, jurisdiction over the area where the institution/school is situated.

r) In case of a Divyaang child studying in an institution i.e. aided or approved by the Central/State Govt. or UT Administration or whose fees are approved by any of these authorities, the Children Education Allowance paid by the Govt. servant shall be reimbursed irrespective of whether the institution is ‘recognized’ or not. In such cases the benefits will be admissible till the child attains the age of 22 years.

s) The CEA is payable for the children of all Central Government employees including citizens of Nepal and Bhutan, who are employees of Government of India, and whose children are studying in the native place. However, a certificate may be obtained from the concerned Indian Mission that the school is recognized by the educational authority having jurisdiction over the area where the institution is situated.

t) The Children Education Allowance or hostel subsidy shall be admissible to a Govt. servant while he/she is on duty or is under suspension or is on leave (including extra ordinary leave). Provided that during any period which is treated as ‘dies non’ the Govt. servant shall not be eligible for the CEA/Hostel subsidy for that period.

3.These above instructions would come into effect from 1st July, 2017.

Hindi version follows.

S/d,
(Sandeep Saxena)
Under Secretary to the Government of India

Dearness Allowance

कर अधिनियम की धारा 80 डी आपको कर लगाने से पहले आय से कटौती के रूप में किए गए चिकित्सा व्यय का दावा करके कर बचाने की अनुमति देती है। यदि आप इन दो शर्तों से संतुष्ट हैं तो आप इस कटौती का दावा कर सकते हैं:

क) चिकित्सा व्यय स्वयं, पति या पत्नी या आश्रित बच्चों या / और माता-पिता पर खर्च किया जाना चाहिए। इसके अलावा, जिस व्यक्ति के लिए चिकित्सा व्यय किया जाता है, उसकी आयु 60 वर्ष और उससे अधिक होनी चाहिए। इसलिए, ज्यादातर मामलों में लोग केवल स्वयं / पति या माता-पिता के लिए यह दावा करने में सक्षम होंगे क्योंकि आश्रित बच्चे 60+ आयु वर्ग में होने की संभावना कम है।

ख) जिस व्यक्ति पर चिकित्सा व्यय किया गया है, उसे किसी भी स्वास्थ्य बीमा पॉलिसी के तहत कवर नहीं किया जाना चाहिए।

अगर ये दोनों शर्तें पूरी हो जाती हैं, तो एक वित्तीय वर्ष में अधिकतम 50,000 रुपये की कटौती का दावा किया जा सकता है। इस कटौती का दावा करने के लिए, सभी चिकित्सा व्यय को नकद के अलावा किसी अन्य मोड में भुगतान करना होगा। इसका अर्थ है कि चिकित्सा खर्चों के लिए सभी भुगतान बैंकिंग चैनलों जैसे कि क्रेडिट कार्ड, डेबिट कार्ड और नेट-बेकिंग या डिजिटल चैनल जैसे मोबाइल वॉलेट, यूपीआई इत्यादि के माध्यम से किए जाने चाहिए।

Document to be submitted for availing partial withdrawal, NPS partial withdrawal Document, Evidence for Reason of NPS Partial Withdrawal



For Higher education
Copy of admission letter of the Institute along with Fees schedule

For marriage of his or her children 
Self-Declaration

For    purchase    or    construction    of    a    residential    house    or    flat    in    his    or    her  
own name or in a joint name with his or her legally wedded spouse
Photocopy of Title Documents of the Property. Approved Plan and self-declaration    OR    Loan    offer    letter    from    a    housing    finance    company   or a Bank and self-declaration

For     treatment     of     specified     illnesses:     if     the     subscriber,     his     legally   wedded spouse, children, including a legally adopted child or dependent parents.
Certificate    from    Doctor

to meet medical and incidental expenses arising out of the disability or incapacitation suffered by the subscriber
Disability    certificate     from    a    Government    surgeon    or    Doctor     (treating such disability or invalidation of subscriber) stating the nature and extent of disability and also certifying that subscriber need not be discharged from duty.

For Skill development/re-skilling or any other self-development activities
a)   Admission/Sanctions letter from university in India/abroad with fee detail
b)          For    distance    learning    programs,    copy/s    of    invoice/s    which    confirm   
the payment of required fee for desired course
c)    For other skill development programmes, copy of invoices confirming    payment    of    fee    for    the    desired    course
d)    study leave sanction letter/NOC provided by the organisation/department/ministry, if required in terms of the employee’s service conditions (not applicable where employee-employer relationship
does not exists)

For Establishment of own venture or any start-up
a)    Registration    Certificate    of    entity
b)   Proof of ownership of the entity (it should be in the name of the subscriber)
c)   Registration number issued by Government Authorities like GST/Income Tax/Govt. Departments