Children Education Allowance (CEA) for central government employees

Updated 11 October 2026

Central government employees get a fixed Children Education Allowance (CEA) of ₹2,812.50 a month per child, or ₹33,750 a year, for up to two children studying from nursery to Class 12, whatever the actual fees. Hostel subsidy is up to ₹8,437.50 a month per child, and a DoPT corrigendum of 30 June 2026 made clear it is limited to the actual boarding and lodging cost if that is lower. Both are claimed once a year.

Current CEA and hostel subsidy rates

These rates apply from 1 January 2024 (DoPT OM of 25 April 2024). CEA does not depend on what you spend: you get the fixed amount even if the school is cheaper, and nothing more if it costs more.

Why it is ₹2,812.50: the 25% rule

The 7th CPC set CEA at ₹2,250 a month and hostel subsidy at ₹6,750 a month from 1 July 2017 (DoPT OM of 17 July 2018). Both rise automatically by 25% each time DA on the 7th CPC pay structure goes up by 50%. DA reached 50% on 1 January 2024, so:

• CEA: ₹2,250 × 1.25 = ₹2,812.50
• Hostel subsidy: ₹6,750 × 1.25 = ₹8,437.50
• CEA for a child with disability: ₹4,500 × 1.25 = ₹5,625

DA is 60% from January 2026 and the July 2026 instalment has not been declared (63% is expected, not official). Neither changes CEA. The next 25% step would come only when DA reaches 100%, and the 8th Pay Commission is expected to reset pay and allowances before that. See how DA moves on the DA rates page.

Who can claim CEA

• Children: your two eldest surviving children. If the second birth gives twins or more, all of them are covered. A child born after a failed sterilisation is also allowed beyond the limit.
• Classes: nursery to Class 12, including the two classes before Class 1 and Classes 11 and 12 in junior colleges. The first two years of a diploma or certificate course after Class 10 count instead, if CEA was not taken for Classes 11 and 12. Distance learning qualifies.
• Age: up to 20 years or Class 12, whichever comes first. For a child with disability the limit is 22 years.
• Both parents in government: only one of you can claim for a child.
• Your status: CEA continues while you are on leave (including extraordinary leave) or under suspension. If an employee dies in service, the children keep getting it, provided the surviving spouse is not employed in government or a public sector body. On retirement it continues to the end of that academic year.

Hostel subsidy after the 2026 corrigendum

Hostel subsidy is for a child living in a residential school or hostel at least 50 km from your home, and you can claim it together with CEA for the same child. The April 2024 order said both amounts were payable "irrespective of actual expenses". DoPT's corrigendum of 30 June 2026 changed that for hostel subsidy only: you now get ₹8,437.50 a month or the actual boarding and lodging cost, whichever is lower. CEA itself remains a fixed amount.

How to claim

CEA and hostel subsidy are reimbursed once a year, after the academic year is over. With the claim form your office prescribes, attach either:

• a certificate from the head of the school confirming that your child studied there during the previous academic year (for hostel subsidy, the certificate should also state the boarding and lodging expenses), or
• a self-attested copy of the report card and the fee receipts for the full year (e-receipts are accepted). For hostel subsidy without a certificate, the receipts must show the boarding and lodging amount.

Marks do not matter: CEA is paid whatever your child's result. The official orders are on the DoPT website.

Is CEA taxable?

From tax year 2026-27, the Income-tax Rules 2026 raised the old-regime exemption for children's education allowance to ₹3,000 a month per child and for hostel allowance to ₹9,000 a month per child, for up to two children (the old limits were ₹100 and ₹300). The government's ₹2,812.50 and a hostel subsidy of up to ₹8,437.50 both fit inside these limits, so under the old regime they are fully exempt. Under the new regime, which is the default, both are taxed as salary. For parents this can tip the old vs new regime choice.