Important clarification on Hostel subsidy

Readers may aware that as per DOPT OM No: 12011/3/2008-Estt (Allowance) dated 2.9.2008 and clarification OM No: 12011/03/2008-Estt (Allowance) dated 11.11.2008, Hostel subsidy at the rate of Rs.3000 per month is allowed as reimbursement for two children of central government employees provided the children study in a hostel of a school away from the station at which the employee is posted or is residing.

However, based on a opinion of Swamy’s Publications, many administrative authorities have rejected the Hostel subsidy claim under New CEA scheme of the employees on the ground that their children were not forced to study in hostel due to reasons such as transfer etc but they have been admitted in a school away from the working place of employees for the purpose of better education.

It is very clear from the OM dated 2.9.2008 of DOPT that all the previous instructions relating to reimbursement of tuition fees and hostel subsidy etc have been superseded by the new CEA scheme.  So, the old instructions relating old hostel subsidy will not be applicable to hostel subsidy under New children education Scheme.  Also there is no specific instruction from DOPT to reject hostel subsidy on the ground detailed above.

Now to the relief of employees who have admitted their children in a school away from working place for better education, DOPT has issued categorical clarification to Swamy’s publications vide letter No: 12011/01/2010-Estt (Allowance) dated 11.1.2010.  Extact of the same is published in Swamy’s monthly news for the month of March-2010 (Circular No: 44).

It is clarified by DOPT that OM dated 2.9.2008 of DOPT and subsequent clarification of even number dated 11.11.2008 have been issued in supersession of all the earlier orders.  Hostel subsidy is reimbursable to all central government employees for keeping their children in the hostel of a residential school away from the station they are posted or are residing irrespective of any transfer liability

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