“Clarification on the subject of the definition of 'station' for the purpose of Hostel Subsidy under Children Education Allowance Scheme. The Department of Personnel and Training has issued the clarification orders regarding the above subject today.”
Hostel subsidy is admissible for a government servant, if the children of the government employee staying in a hostel of a residential school/ institution located beyond a distance of 50 kilometers from the resident of such government employee. It is also clarified that grant of hostel subsidy is not related to transfer liability of the Government Servant.
As per the Government order O.M.No.12011/03/2008-Estt.(AL) dated 2nd September, 2008 the hostel subsidy will be maximum of Rs. 3000 per month per child up to 2 children of a government employee and the amount will be increased by 25% for every 50% increase of D.A. However both hostel subsidy and children education allowance cannot be availed concurrently.
Refer the order
Government of India
Ministry of Personnel, Public Grievances and Pension
Department of Personnel & Training
New Delhi, May 31, 2012
Subject: Children Education Allowance/Hostel Subsidy — Clarification
Subsequent to clarifications issued vide O.M.No.12011/3/2008-Estt.(Allowance) dated 11.11.2008 and O.M.No.12011/08/2010-Estt.(AL) dated 30.12.2010, on the captioned subject, references have been received on (i) definition of the term “station” and (ii) admissibility of Hostel Subsidy and Children Education Allowance in respect of children pursuing diploma / certificate courses frompolytechnic / ITI / Engineering College, after passing 10th standard.
2. After due consideration of the references in consultation with the Department of Expenditure, the following has been decided:
a. The term Hostel Subsidy would mean expenses incurred by the Government servant if he/she keeps his/her children in a hostel of a residential school/institution located beyond a distance of 50 kilometres from his/her residence. The reimbursement would be subject to other conditions laid down in the O.M. dated 2.9.2008 and subsequent instructions issued from time to time. It is further clarified that grant of hostel subsidy is not related to transfer liability of the Government servant.
b. To allow reimbursement of Children Education Allowance/Hostel Subsidy 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. This is further subject to fulfilment of other conditions laid down in the O.M. dated 2.9.2008 and subsequent instructions issued from time to time.
3. This comes into effect from the current academic year.
Hindi version will follow.
More clarification, Children Education Allowance Scheme
List of Allowances increase 25% when D. A is 51%
Allowances Admissible to Central Government Employees.