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Saturday, October 30, 2010

Clarifications on Hostel Subsidy & Reimbursement under

Some Clarifications on Hostel Subsidy and CEA
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, as reported, 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of DOPT that all the previous instructions relating to reimbursement of tuition fees and hostel subsidy etc have been superseded by the new CEA scheme.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 vide letter No: 12011/01/2010-Estt (Allowance) dated 11.1.2010. 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 Clarifications on Hostel Subsidy & Reimbursement under
Children Education Assistance.
The latest clarification is reproduced below.
33-4/2010-PAPGovernment of IndiaMinistry of Communications & ITDepartment of Posts(Establishment Division)
Dak Bhawan,
Parliament Street
New Delhi – 110001
Dated 21.07.2010

All Chief Postmasters General
All Postmasters General
All Directors of Accounts (Postal)

Subject : Sub: – Grant of Hostel subsidy and Children Education Assistance
Sir/Madam
Representations have been received from the staff side that:
(i) In many circles, the Hostel Subsidy has not been sanctioned to the officials as per the OM No 12011/03/2008-Estt (Allowance) dt. 2.9.2008
(ii) that the officials are entitled for reimbursement of all fee paid for children like imparting music or any other subject fee for the use of any aid or appliance extra-curricular activities, besides reimbursement of one set of text-books and notebooks, 2 sets of uniform and one set of school shoes, etc. However, the reimbursement has not been made for the above item for want of separate orders from the Directorate about the modalities. He requested the Directorate for issue of clarifications to circles.
2. The issues raised by the staff side have been examined and in consultation with the Department of Personnel and Training. The Department of Personnel and Training vide their U.O. No. 12011/05/2010-Estt (Allowance) dt. 05.07.2010 intimated that, it has been clarified vide OM NO. 12011/03/2008-Estt (Allowance) dt. 11-11-2008 that “hostel subsidy means expenses incurred by the Government servant if he has to keep his children in the hostel of a residential school away from the station at which he is posted or is residing. There are no further conditions attached to it. Further the OM no. 12011/03/2008-Estt (Allowance) dt. 2-9-2008 has been issued in supersession of the earlier orders. Therefore for payment of Hostel subsidy, the condition required to be fulfilled is keeping his children in the hostel of a residential school away from the station at which he is posted or is residing and it is not linked to transfer of Government servant as clarified by the Nodal Ministry. Further, as per OM No. 12011/03/2008-Estt. (Allowance) dated 02.09.2008, both Hostel Subsidy and Children Education Assistance cannot be availed concurrently.
3. In regard to point no. 2 raised by the Staff side, attention of the circles is invited to OM no. 12011/03/2008-Estt (Allowance) dt. 02.09.2008 wherein reimbursement items that can be claimed were detailed as:
“Tuition fee, admission fee, laboratory fee, special fee charged for agriculture, Electronics, music or any other subject, fee charged for practical work under programme of work experience, fee paid for the use of any aid or appliance by the child, library fee, games/sports fee and fee for extra-curricular activities This also includes reimbursement for purchase of one set of text books and note books, two sets of uniforms and one set of school shoes can be claimed for a child in a year”.
However, all these items are within the Annual Ceiling of Rs.12000 subject to production of cash receipts and other conditions prescribed by the Nodal Ministry in the said OM.
4. It is requested to bring these instructions to the notice of all concerned for scrupulous observance and strict compliance.

Sd/-(K. Rameshwara Rao)
Assistant Director General (Estt)

1 comment:

Anonymous said...

While reimbursing hostel subsidy amounting to Rs. 36,000/- p.a., amount spent specifically for Hostel accommodation could be taken or total amount spent for tuition and hostel could be considered for that year.