Children Education Allowance/Hostel Subsidy- clarifications thereon

Government of India 

Ministry of Railways 

Railway Board

No. E(W)2012/ED-2/1

New Delhi , Dated 11/04/2012

In terms of Railway Board’s letter No. E(W)/2008/ED-2/4 dated 01-10-2008 revised instructions were issued on Grant of Children Education Allowance to Railway employees based on the recommendations of Sixth Central Pay Commission. These instructions provide that Children Education Allowance shall be admissible to Railway servants up to a maximum of two children at the maximum rate of Rs.12,000 (since revised to Rs.15,000/-) per annum per child to cover expenses on education of children under various heads of fee as mentioned in the said letter. In respect of aforesaid policy it was further clarified under Board’s letter No. E(W)2008/ED-2/4 dated 10/06/2009 based on the advice received from Department of Personnel and Training and adopted by Railway Board, that reimbursement of Children Education Allowance is admissible for eldest two surviving children studying in schools affiliated to Board of Education.

2. It has come to the notice of Railway Board that reimbursement of Children Education Allowance has been allowed in certain cases prior to 10-06-2009 in respect of any two children of the Railway employees. Clarifications have been sought from Railway Board as to whether the Children Education Allowance paid prior to issue of Board’s guidelines dated 10-06-2009 in respect of any two children other than the eldest two children may be recovered. This issue has been examined in consultation with associate finance in Railway Board and it has been decided that no recovery need be made from such Railway employees where Children Education Allowance has been paid in respect of any two children other than eldest two surviving children prior to 10/06/2009.

3. This issues with the concurrence of Finance Directorate of Ministry of Railways.

4. This also disposes of North ‘Central Railway’s letter No.613/NCR/HQ/A/Cs/Admin/CEA dated 31-05-2010.