The Centre has recently revised the limits of children’s education allowance and hostel subsidy for its employees, according to a directive from the personnel ministry. This update follows the recent enhancement of dearness allowance, which took effect from January 1, 2024.

As per a 2018 directive, the allowances and subsidy limits are to be automatically raised by 25% whenever there’s a 50% increase in dearness allowance on the revised pay structure.

With the recent increase in dearness allowance, the children’s education allowance has been fixed at Rs 2,812.5 per month, while the hostel subsidy stands at Rs 8,437.5 per month. These fixed amounts apply regardless of the actual expenses incurred by the employees.

Additionally, for children with disabilities, the reimbursement rate has been doubled to Rs 5,625 per month. Furthermore, the special allowance for child care for women with disabilities has been revised to Rs 3,750 per month.

These adjustments, effective from January 1, 2024, are applicable to all central government ministries.

Source: PTI

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