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7th CPC Children Education Allowance

In India, employees of the government receive many benefits, allowances, perquisites and concessions. Such benefits are decided by the Central Pay Commission, established to provide rules for salaries and other payments to the government employees. It is to be noted that allowances in respect of such employees are not only restricted to their own expenses, stay or travel, but also cover for their family’s expenses, stay or travel. One such allowance is Children’s Education Allowance. It was introduced on 1st September, 2008. As the name states, Children’s Education Allowance is provided to the employees for educational expenses of their children. In this allowance, education expenses related to school and hostel is covered. Under Children’s Education Allowance, there are components, allowances, and updates for educational allowances. The amount of allowance for a differently- abled child is double than what is offered to a normal child.

7th CPC and Govt. Decision on Children Education Allowance

It is one of the most awaited hike allowance for central government employees. However, the 7th Pay Commission has advised that the allowance rate for children will continue to be CEA INR 2250 per child and hostel subsidy rate will be INR 6750 per child.

The scheme initially provided the following rates to students.

Component of the allowanceAllowance per month
1. EducationINR 1,500 per month
2. HostelINR 4,500 per month

But after subsequent requests and various demands to increase the rates, the Government has increased the applicable rates. Not only was this demand met, scope of the allowance was expanded and process for reimbursement of the same was also simplified.

The current allowance as decided by the 7th Central Pay Commission is:

Component of the allowanceAllowance per month
1. EducationINR 2,250 per month
2. HostelINR 6,750 per month

The above rates are for children who aren’t differently able. The rates for children who are differently abled shall be double as that of mentioned above. Actual fees paid or amount mentioned as above, whichever is lower, shall be payable to the parents. Presently, Children’s Education Allowance shall be claimed for students studying up to Class XII. The maximum number of children in respect of whom education allowance can be availed are two. The only condition is that must study in a recognized school. There have been demands to raise the benefit from class XII to graduate and Post Graduate students. However, the commission has strongly opposed this demand.

Simplification of the reimbursement process

Reimbursement process was once a complex area for many years altogether. There were times wherein reimbursement was pending over a period of year or the list of documents that were accepted for claiming such an allowance was vague or the process was cumbersome and time-consuming.

Now, post several requests made in relation to the above context, process to claim reimbursement has now been simplified. The allowance now demands only a single document for claiming the allowance and that is: In order to claim Children’s Education Allowance (Education amount), a certificate from the head of institution were the child of government employee studies should be satisfactory for the said purpose. The certificate should provide for a confirmation that the child studied in the school during the previous academic year. For claiming allowance for hostel stay, a certificate stating the amount incurred by the parent of the student for lodging and boarding from the head of the institution shall be a valid proof.

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