Apr 292016

Child Education Allowance, Eligibility Criteria in 7th pay commission

The Children Education Allowance is a special type of benefit received by the central govt. employees. This special allowance is given to the employees so that they can spend it for their children’s education. The structure under which the central govt. employees are getting the children education allowance was proposed in the 6th pay commission in 2008. But it will be very interesting to look out whether the Govt. will bring some new recommendations for the CEA.

child education allowance, Eligibility Criteria, in 7th pay commission1

  • What are the present Children Education Allowance rules?

As per the current rules of education allowance received by the central govt. employees for their wardens, they are getting monthly stipend for education expenses of their children. The CEA is given so that the employees can take care of schooling as well as hostel expenses of their children. This scheme is applicable only for two children per employee. Also the allowance is provided till the children of the employees pass 12th standard. After that the children educational allowance will be stopped. Also for children with disability, this allowance is doubled. Many sections of employees want this allowance up to the graduation or higher studies of their children under the 7th CPC.

  • Current Children Education Allowance rates

As per the existing rules of the CEA, the employees of the central govt. receive an allowance of Rs. 2,250 per month for each child for his / her schooling expenses. The employees can get this allowance for a maximum number of two children. This allowance is allowed till the children pass the class 12th standard. After that, the allowance terminates. For those children who stay out of station in hostels, the employees are eligible get a monthly allowance of Rs. 6,750. However the commission is flooded with requests to include the graduation too in this allowance scheme.

  • How the Children Education Allowance (CEA) change with Dearness Allowance (DA)?

In the beginning of the year 2014, the dearness allowance or DA of the employees of the central government crossed 100 per cent. DA plays a very important role in the salary structures of the central govt. employees. With the change of rate of DA, the rate of CEA was also hiked by 50 per cent. The current rate of DA is 125 per cent. After the full implementation of the 7th central pay commission, the DA rate will become zero again. But as per recommendations of 7th CPC, the children allowance for education will be increased by 50 per cent whenever the DA will becomes 50 per cent.

  • The procedure of allowance receipt by the beneficiaries to be made simpler

As per the 7th pay commission, the govt. is working on how to simplify the process of disbursement of the educational allowance claims. There have been several instances in the past of misuse of this children education allowance. So to put an anchor to these, the govt. is dedicated to make the claim and settlement system clean. To implement this, the employee will have to submit an affidavit which indicates the bonafied studentship of the children from the school, from where he / she are studying.

  • Question on level of compensation

As different schools across the nation have different rates of school fees, hostel fees and other educational expenses. Govt. schools such as Sainik Schools, Kendriya Vidyalayas and the state run Govt. schools have low tuition fees or hostel fees. But the private schools have hefty schooling and boarding fees that exceeds Rs. 25,000 per month in some cases. So in this scenario, the question on the utilization of this allowance is questioned.

Sl. No. Attributes of CEA Important Data
1 Number of children per employee Two
2 Up to which class the allowance is given 12th Standard
3 Allowance for disabled children Double rate
4 Monthly allowance under 7th CPC (schooling) Rs. 2,250
5 Monthly allowance under 7th CPC (hostel) Rs. 6,750

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