7th Pay Commission (7th CPC) Decisions relating to the grant of Children Education Allowance (CEA) and Hostel Subsidy

7th Pay Commission (7th CPC) Decisions relating to the grant of Children Education Allowance (CEA) and Hostel Subsidy

7th CPC

No.A-270 12/02120 17-Estt.(AL)
Government of India
Ministry of Personnel, Public Grievances and Pensions
Department of Personnel & Training

Block-IV, Old JNU Campus, New Delhi
Dated: 17th July 2018

Office Memorandum

Subject: Recommendations of the Seventh Central Pay Commission - Implementation of decisions relating to the grant of Children Education Allowance (CEA) and Hostel Subsidy - Consolidated instructions.

Consequent upon the decisions taken by the Government to implement the recommendations made by the VII Central Pay Commission, this Department has issued an OM of even number dated 16-8-2017 revising the rates of CEA/Hostel Subsidy and simplifying the procedure for claiming reimbursement of the same. However this Department has been receiving various queries regarding CEA/Hostel Subsidy especially with regard to the applicability of various provision/instructions issued during sixth CPC regime/period. Further references have also been received regarding the difficulty being faced by some government employees in obtaining certificate of the Head of the
Institution as mentioned in this Department's OM of even number dated 16-8-2017.

2. Keeping in view the above, it has been decided to issue consolidated instructions in supersession of all earlier OMs on the subject of Children Education Allowance and Hostel subsidy as under:-

a) The reimbursement of Children Education Allowance/Hostel subsidy can be claimed only for the two eldest surviving children with the exception that in case the second child birth results in twins/multiple birth. In case of failure of sterilization operation, the CEA/Hostel Subsidy would be admissible in respect of children born out of the first instance of such failure beyond the usual two children norm.

b) The amount for reimbursement of Children Education allowance will be Rs.2250/- per month (fixed) per child. This amount of Rs.2250/- is fixed irrespective of the actual expenses incurred by the Govt. Servant. In order to claim reimbursement of CEA, the Govt. servant should produce a certificate issued by the Head of the Institution for the period/year for which claim has been preferred. The certificate should confirm that the child studied in the school during the previous academic year. In case such certificate can not be obtained, self- attested copy of the report card or self attested fee receipt(s){including e-receipt(s)} confirming/indicating that the fee deposited for the entire academic year can be produced as a supporting document to claim CEA. The period/year means academic year i.e. twelve months of complete academic session.

c) The amount of ceiling of hostel subsidy is Rs.6750/- pm. In order to claim reimbursement of Hostel Subsidy for an academic year, a similar certificate from the Head of Institution confirming that the child studied in the school will suffice, with additional requirement that the certificate should mention the amount of expenditure incurred by the Government servant towards lodging and boarding in the residential
complex. In case such certificate cannot be obtained, self attested copy of the report card and original fee receipt(s)/e-receipt(s) which should indicate the amount of expenditure incurred by the Government servant towards lodging and boarding in the residential complex can be produced for claiming Hostel Subsidy: The expenditure on boarding and lodging or the ceiling of Rs.6750/- as mentioned above, whichever is lower, shall be paid to the employee as Hostel Subsidy. The period/year will mean the same as explained above in clause (b) of this para.

d) The reimbursement of Children Education Allowance for Divyaang children of government employees shall be payable at double the normal rates of CEA prescribed above in clause (b) i.e. Rs.4500/- per month (fixed).

e) The above rates/ceiling would be automatically raised by 25% every time the Dearness Allowance on the revised pay structure goes up by 50%.

f) The Hostel Subsidy and Children Education Allowance can be claimed concurrently.

g) In case both the spouses are Government servants, only one of them can avail reimbursement under Children Education Allowance and Hostel Subsidy.

h) The reimbursement of CEA and Hostel Subsidy will be done just once in a financial year after completion of the financial year.

i) Hostel subsidy is applicable only in respect of the child studying in a residential educational institution located at least 50 kilometers from the residence of the Government servant.

j) The reimbursement of Children Education Allowance and Hostel Subsidy shall have no nexus with the performance of the child in his class. In other words, even if a child fails in a particular class, the reimbursement of Children Education Allowance/Hostel Subsidy shall not be stopped. However, if the child is admitted in the same class in another school, although the child has passed out of the same class in previous school or in the mid-session, CEA shall not be reimbursable.

k) If a Government servant dies while in service, the Children Education Allowance or hostel subsidy shall be admissible in respect of his/her children subject to observance of other conditions for its grant provided the wife/husband of the deceased is not employed in service of the Central Govt., State Government, Autonomous body, PSU, Semi Government Organization such as Municipality, Port Trust Authority or any other organization partly or fully funded by the Central Govt./State Governments. In such cases the CEA/Hostel Subsidy shall be payable to the children till such time the employee would have actually received the same, subject. to the condition that other terms and conditions are fulfilled. The payment shall be made by the office in which the Government servant was working prior to his death and will be regulated by the other conditions, laid down in this OM.

I) In case of retirement, discharge, dismissal or removal from service, CEA/Hostel Subsidy shall be admissible till the end of the academic year in which the Government servant ceases to be in service due to retirement, discharge, dismissal or removal from service in the course of an academic year. The payment shall be made by the office in which the government servant worked prior to these events and will be regulated by the other conditions laid down in this OM.

m) The upper age limit for Divyaang children has been set at 22 years. In the case of other children the age limit will be 20 years or till the time of passing 12th class whichever is earlier. There shall be no minimum age.

n) Reimbursement of CEA and Hostel Subsidy shall be applicable for children from class nursery to twelfth, including classes eleventh and twelfth held by Junior Colleges or schools affiliated to Universities or Boards of Education.

0) CEA is allowed in case of children studying through "Correspondence or Distance Learning" subject to other conditions laid down herein.

p) The CEA and Hostel Subsidy is admissible in respect of children studying from two classes before class one to 12th standard and also for the initial two years of a diploma/certificate course from Polytechnic/ITI/Engineering College, if the child pursues the course after passing 10th standard and the Government servant has not been granted CEA/ Hostel Subsidy in respect of the child for studies in I1th and 12th standards.

q) In respect of schools/institutions at nursery, primary and middle level not affiliated to any Board of education, the reimbursement under the Scheme may be allowed for the children studying in a recognized school/institution. Recognized school/institution in this regard means a Government school or any education institution whether in receipt of Govt. Aid or not, recognized by the Central or State Government or Union Territory Administration or by University or a recognized educational authority having jurisdiction over the area where the institution/school is situated.

r) In case of a Divyaang child studying in an institution i.e. aided or approved by the Central/State Govt. or UT Administration or whose fees are approved by any of these authorities, the Children Education Allowance paid by the Govt. servant shall be reimbursed irrespective of whether the institution is 'recognized' or not. In such cases the benefits will be admissible till the child attains the age of 22 years.

s) The CEA is payable for the children of all Central Government employees including citizens of Nepal[ and Bhutan, who are employees of Government of India, and whose children are studying in the native place. However, a certificate may be obtained from the concerned Indian Mission that the school ' is recognized by the educational authority having jurisdiction over the area where the institution is situated.

t) The Children Education Allowance or hostel subsidy shall be admissible to a Govt. servant while he/she is on duty or is under suspension or is on leave (including extra ordinary leave). Provided that during any period which is treated as 'dies non' the Govt. servant shall not be eligible for the CEA/Hostel subsidy for that period.

3. These above instructions would come into effect from 1st July, 2017.

Hindi version follows.

(Sandeep Saxena)
Under Secretary to the Government of India
Tel: 26164316

To
1. Ministries/Departments of the Government of India.
2. NIC with a request to upload the OM on the website of DoPT.

Source: DoPT

Gratitude expressed on the Government decisions on the VII Central Pay Commission recommendations

Gratitude expressed on the Govt decisions on the VII Central Pay Commission recommendations

No.SG/BPS/17/2017

Dated: 31.5.2017

To
Dr.Jitendra Singh
Hon'ble Minister of State,
(Independent Charge)
Govt. of India
Ministry of Personnel, Public Grievances and Pensions,
New Delhi - 110001

Sub: Gratitude expressed on the Govt decisions on the VII Central Pay Commission recommendations - reg.

Respected Sir,

1. Bharat Pensioners Samaj a conglomerate of over 725 Pensioners Associations while expressing its gratitude to Govt. of India for the benevolent decision on the VII Central Pay Commission recommendations on the revision of Pension based on the 'Notional Pay' on last pay drawn basis.

2.Sir, the VII Central Pay Commissions recommendations as well as benefit of revised 'Dearness Relief' have not been implemented in respect of Pensioners retired from the Central Government autonomous bodies under various Central Ministries of Govt of India undertakings and Public Sector undertakings who are eligible to received Pension under CCS(Pension)Rules from the Govt. of India. Kindly order the early revision of Pension with Dearness Relief at the revised rates.

3.  The VII Central Pay Commission has recommended the extension of CGHS benefits to Postal Pensioners as well as takeover of remaining Postal Dispensaries. The VII Central Pay Commission also recommended the introduction of comprehensive Health Insurance Scheme for the Central Government employees and pensioners. These recommendations remain unimplemented so far. The excessive revision of CGHS subscription also causing hardships to the Pensioners.

The Hon'ble Minister may kindly order the examination of these issues and order remedial measures at his earliest convenience.

Thanking you.

Yours faithfully,
sd/-
S.C.Maheshwari
Genl Secy. Bharat Pensioners Samaj

Source: BPS

Seventh Pay Commission may not lower retirement age

Seventh Pay Commission may not lower retirement age

New Delhi: The Seventh Pay Commission is not likely to take a major decision of the lowering of the retirement age for central government employees to 58 years old, two years earlier than what the present law requires.

Since studies show that Indian people reaching the age of 50 years old tend to suffer from a decline of cognitive and physical abilities.

That older employees also find it harder to adapt to modern technology, which is must required to develop the nation.

The youth people in country have increased and so the pay panel may want to focus on Youth unemployment as, “More retirees would mean more job openings for the youth.”

But no discussion has made on the proposal to either raise or reduce the retirement age of central government employees from the present 60 years in the pay panel till date.

The pay panel is likely to keep the retirement age of central government employees unchanged at 60 years, a senior official of the pay panel said.

“We are not going to either recommend lowering or raising the retirement age. If we lower the age limit, the pension burden will bust the government’s medium-term fiscal targets,” he added.

However, the Seventh Pay Commission urged the finance ministry to extend the deadline by a month to submit its recommendations. Accordingly it is expected to submit its report by the end of September. The time allotted for the commission ends this month.

“There are some data points that are missing, which we hope to get by this month end. We are trying to submit the report by 20 September,” the official of the pay panel also said.

The Pay panel report may be effective from by April 2016.

TST

INDWF proposals for General Budget 2013

General Budget 2013 – INDWF proposals for General Budget 2013

NDWF/PM/Budget/2013 19.01.2013

To
Hon’blePrime Minister,
Government of India,
New Delhi 110 011.

Sub: General Budget 2013 – INDWF proposals for General Budget 2013

Sir,
Indian National Defence Workers Federation affiliated to Indian National Trade Union Congress is the Federation of around 300 unions in the Defence Civilian Sector consisting of around more than 1 lac employees as its members

GENERAL BUDGET 2013 – Consideration of INDWF’s Proposals:

INDWF requests the Hon’ble Finance Minister to kindly consider the following proposals for inclusion in the General Budget 2013 which would provide relief to over 34 lac of Central Government Employees (including 3.5 lacs of Defence Civilian employee) and also other workers.

1. Annual income amounting to Rs.5 lacs may be exempted from the purview of income tax in view of steep rise in prices of essential commodities.

2. Since the percentage of Dearness Allowance has crossed 50% of pay long ago there is thus immediate need for setting up of VII Central Pay Commission, alternatively, the Government may consider setting up of Permanent Wage Revision Board.

3. 50% DA may be merged with pay as was done in the year 2004.

4. Bonus Act to be amended for ensuring payment of Bonus including that of Productivity Linked Bonus (PLB) on actual monthly wages, alternatively, the limit may be enhanced to Rs.10, 000 for payment of PLB to Defence Civilian Employees.

5. New Pension Scheme for the employees joined Government services after 01.01.2004 is anti-worker and anti-staff. NPS does not carry safe guards admissible under the Pension Rules 1993; The New Pension Scheme needs to be scrapped.

6. Additional pension be allowed to the retired Central Government employees on attaining 70 years of age.

7. INDWF proposed upward revision of retirement age on superannuation from 60 to 62 years in the wake of mass retirements during the coming years, as it is possible that there may be shortage of skilled and qualified personnel.

8. Thousands of contract workers have been engaged in the Public and Private Sector industries with a meager salary. This way, the exploitation of poor labourers is going on unabatedly. We are demanding abolition of contract labour system in all the industries, particularly the Government owned sectors. Till such time a policy is framed, we propose that the same remuneration as that of permanent workers be paid to the contract workers as well as outsourced workers.

9. The perks/fringe benefits presently being availed by the workers including private sector workers as incentive be considered for exemption from the taxes.

10. Transport Allowance paid to the Central Government employees including Defence Employees may be exempted from the purview of income tax.

11. Children Education Allowance being re-imbursed to all the employees for their school going children to the tune of Rs.15,000/- per child per year, but the same is being taxed, only a rebate of Rs.40 per annum. Hence, it is requested to exempt the Children Education Allowance from the purview of Income Tax to the full extent of the allowance paid to the employee.

12. For adequate career growth of Teachers and Lecturers of Central Government Institutions particularly in Ordnance Factories, the Modified Assured Career Progression Scheme (MACP) may be made applicable to them.

INDWF is confident that the Hon’ble Finance Minister would give serious consideration to the above proposals for making Budget announcements.

Thanking you,

Yours Sincerely,
(R.SRINIVASAN)
General Secretary.