PROPOSED NEW RATES OF CHILDREN EDUCATION ALLOWANCE (CEA/RTF) AS PER RECOMMENDATIONS OF 7TH CPC

The Commission recommended as follows

Component	Recommended rate	Remarks
CEA (Rs. pm)	1500x1.5 = 2250	Whenever DA increases by 50%, CEA shall increase by 25%
Hostel Subsidy (Rs. pm)	4500 x 1.5 = 6750 (ceiling)	Whenever DA increases by 50%, Hostel Subsidy shall increase by 25%

Simplification of Procedure for Reimbursement:-

It is recommended that reimbursement should be done just once a year, after

completion of the financial year (which for most schools coincides with the

Academic year). For CEA, a certificate from the head of institution where the

ward of government employee studies should be sufficient for this purpose. The

certificate should confirm that the child studied in the school during the previous

academic year. For Hostel Subsidy, a similar certificate from the head of

institution should suffice, with the additional requirement that the certificate

should mention the amount of expenditure incurred by the government servant

towards lodging and boarding in the residential complex. The amount of

expenditure mentioned, or the ceiling as mentioned in the table above, whichever

is lower, shall be paid to the employee