Please refer to Railway Board’s letter of even number dated 01.01.2008 containing revised policy instructions on Children Education Allowance and Hostel Subsidy admissible to Railway servants based on the recommendations of Sixth Central Pay Commission as per DOP&T’s OM No. 12011/03/2008-Estt. (Allowance) dated 02.09.2008. Reference is also invited to Railway Board’s letter E(W)2008/ED-2/5 dated 13-10-2008 containing instructions on Special Allowance for child care for women with disabilities and Education Allowance for disabled children as per DOP&T’s OM No. 12011/04/2008-Estt. (Allowance) dated 11.09.2008. As per revised scheme, reimbursement limits on Children Education Allowance and Hostel subsidy would be raised by 25% every time the Dearness Allowance on the revised pay structure goes up by 50%.
2. Railway Board vide letter No. PC-VI/2008/1/7/2/1 dated 25-03-2011 has enhanced the Dearness Allowance payable to Railway employees from the existing rate of 45% to 51% with effect from 1st January, 2011.
3. Consequent to aforesaid enhancement in Dearness Allowance to 51%, limits on reimbursement of Children Education Allowance & Hostel Subsidy shall go up by 25% w.e.f. 1st January, 2011. DOP&T vide Office Memorandum No. 12011/01/2011-Estt. (Allowance) dated 04-05-2011 (copy enclosed) has issued clarification to this effect that Children Education Allowance and Hostel Subsidy allowance shall be enhanced by 25% as a result of enhancement of Dearness Allowance to 51% from w.e.f 1st January, 2011.
The clarification issued by DOP&T shall apply mutatis mutandis in respect of Railway employees.
No. 12011/01/2011-Estt. (Allowance)
Government of India
Ministry of Personnel, Public Grievances and Pension
Department of Personnel & Training
New Delhi, May4, 2011
Sub:- Clarification on increase in certain allowances by 25% as a result of enhancement of Dearness Allowances w.e.f. 1.1.2011-
On the above mentioned subject, it is stated that consequent upon enhancement of Dearness Allowance payable to Central Government employees @ 51% w.e.f. 1st January, 2011 vide Ministry of Finance, Department of Expenditure O.M. No. 1(2)/2011-E-II (B) dated 24th March, 2011, the following points are clarified.
(a) The annual ceiling limit for reimbursement of Children Education Allowance shall be Rs. 15,000/- per child. Accordingly, the quarterly claim could be more than Rs. 3750/- in one quarter and less than Rs. 3750/- in another quarter subject to the annual ceiling of Rs. 15,000/- per child and Hostel Subsidy shall be Rs. 3750/- per month per child;
(b) The rates of Special Allowance for Child Care to women with disabilities stands revised to Rs. 1250/- per month; and
(c) The annual ceiling for reimbursement of education allowance for disabled children of Government employees shall be treated as revised to Rs. 30,000/- per annum per child and the rates of Hostel Subsidy for disabled children of Government employees shall be treated as revised from Rs. 6000/- per child per month to Rs. 7500/- per child month.
2. These revisions are applicable with effect from 1st January, 2011.
3. These revision shall be subject to other terms and conditions mentioned in this Department’s O.M. No. 12011/03/2008-Estt(Allowance) dated 2.9.2008 and O.M. No. 12011/04/2008 dated 11.9.2008.