7th Pay Commission Updates: After the central government hiked dearness allowance (DA) for its employees and pensioners to 50% early this year, certain allowances like children education allowance (CEA) and hostel subsidy automatically got revised by up to 25%.
Having received several queries about this increase in rate of allowances from various quarters, the Ministry of Personnel, Public Grievances and Pension Department of Personnel & Training has issued a clarification to clear all doubts in this regard.
“References are being received from various quarters with regard to the amount of children education allowance and hostel subsidy admissible consequent upon enhancement of dearness allowance payable to central government employees @ 50% w.e.f. 1st January, 2024,” the department said in an office memorandum.
Clarifying the rule, the DoPT said the limits of children education allowance and hostel subsidy “would be automatically raised by 25% every time the dearness allowance on the revised pay structure goes up by 50%”.
Absolute amount of hike in CEA and hostel subsidy:
The amount for reimbursement of children education allowance shall be Rs 2,812.5 per month (fixed) and hostel subsidy shall be Rs 8437.5 per month (fixed) irrespective of actual expenses incurred by the government employee, the DoPT memorandum clarified.
Children education allowance for divyang children:
The reimbursement of children education allowance for divyang children of government employees shall be payable at double the normal rates i.e., Rs 5625 per month (fixed), irrespective of actual expenses incurred, it said.
The rates of special allowance for child care to women with disabilities stands revised to Rs 3750 per month subject to other conditions mentioned in the office memorandum.
All these revisions are applicable with effect from January 1 2024, when the DA hike of 4% came into effect.
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Will the Centre merge DA with basic pay?
The central government in March first week announced the DA hike for employees and dearness relief (DR) for pensioners by 4% to 50%. There were media reports, citing a previous instance, suggesting the government may merge the DA with basic as it has touched 50% ceiling after the last 4% increase. But, the Centre is yet to announce any such measure.
