Recently, central government employees received a 4% raise in their Dearness Allowance (DA) to 50%. Dearness relief (DR) for retirees of the central government has been increased by 4% to 50% to counteract price hikes. This will result in a large increase in salaries of central government employees and pensions of retirees.
Certain allowances, such as the Children's Education Allowance (CEA) and the Hostel Subsidy, automatically received revisions of up to 25% following the dearness allowance (DA) hike to 50% for its employees and retirees early this year.
According to an Office Memorandum (OM) released by the Ministry of Personnel, Public Grievances and Pension Department of Personnel & Training dated April 25, 2024, “The undersigned is directed to refer to para 2(e) of this Department's O.M. No.A- 27012/02/2017-Estt (AL) dated 17.07.2018. This provides that the limits of Children Education Allowance and Hostel Subsidy would be automatically raised by 25% every time the Dearness Allowance on the revised pay structure goes up by 50%. References are being received from various quarters with regard to the amount of Children Education Allowance (CEA) and Hostel Subsidy admissible consequent upon enhancement of Dearness Allowance payable to Central Government employees @ 50% w.e.f. 1s1January, 2024 announced vide Ministry of Finance, Department of Expenditure O.M. No.1/1/2024-E-II (B) dated 12th March, 2024.
The following shall be the revised limits for CEA and Hostel Subsidy:
Reimbursement of Children's Education