Education Benefit
CEA RULES & RATES 2026
(New Rate ₹2812.50 & Tax Trap)
(Claim ₹33,750 per child without bills)
⚡ Quick Answer: How much do you get?
Since DA has crossed 50%, the Children Education Allowance (CEA) has increased by 25%. The current rate is ₹2812.50 per month (Fixed). You can claim this for up to 2 eldest surviving children.
⚠️ No Bills Needed: For CEA, you do NOT need to submit fee receipts. A simple Self-Certification or Certificate from the School Head is sufficient.
📢 Share this Rate Chart:
Education is expensive, but the government reimburses a significant chunk. Whether your child is in Nursery or Class 12, or even doing a Diploma, you are eligible. However, parents of twins and ‘Divyang’ children have special provisions.
1. Revised Rates (Post-50% DA)
The 7th Pay Commission linked CEA to Dearness Allowance. Since DA crossed 50%, rates automatically jumped by 25%.
| Component | Monthly Rate | Yearly Limit |
|---|---|---|
| CEA (Normal) | ₹ 2,812.50 | ₹ 33,750 |
| Hostel Subsidy | ₹ 8,437.50 | ₹ 1,01,250 |
| Divyang Child | Double Rate | ₹ 67,500 |
2. Hostel Subsidy Rules
Can you claim both CEA and Hostel Subsidy? Yes. They are concurrent benefits.
✅ Eligibility Conditions:
- Distance: The hostel must be at least 50 KM away from your residence.
- Proof: Requires a certificate from the Head of Institution confirming the child resides in the hostel and the amount of lodging/boarding charges paid.
- Exclusion: Staying with relatives or in a private PG (not run by the school) is NOT eligible.
3. The Tax Exemption Myth (Important)
❌ The Confusion
Employees think the entire ₹2812.50 is tax-free.
Reality: The Income Tax Act exemption limit (Section 10(14)) has NOT been revised since 1997.
⚠️ Taxable Amount
Exempt: Only ₹100 per month (₹1200/year).
Taxable: The remaining ₹2712.50 per month is added to your salary and taxed as per your slab.
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Official Reference (DoPT):
🧮 ALLOWANCE CALCULATOR:
❓ CEA Common Questions
Can I claim for the 3rd child?
Generally, No. However, if the 2nd childbirth resulted in twins (making it 3 children total), CEA is allowed for all three. Also, if a sterilization operation failed, the 3rd child is eligible.
Is CEA paid for Correspondence/Private study?
No. The school/institution must be recognized by a Central/State Board. Private tuitions or correspondence courses are NOT eligible.
🇮🇳 हिंदी में सारांश (Summary in Hindi)
CEA रेट बढ़ गया है (New Rate 2026)
DA 50% पार होने के बाद, अब आपको एक बच्चे के लिए ₹2812.50 प्रति महीना (यानी ₹33,750 सालाना) मिलेगा। यह लाभ अधिकतम 2 बच्चों तक मिलता है।
- 📄 बिल की जरूरत नहीं: CEA क्लेम करने के लिए स्कूल फीस की रसीद (Receipt) लगाने की जरूरत नहीं है। बस “Self-Declaration” या स्कूल का सर्टिफिकेट काफी है।
- 🏫 हॉस्टल सब्सिडी: अगर बच्चा 50 किमी दूर हॉस्टल में रहता है, तो ₹8437.50 प्रति महीना मिलेगा। (इसके लिए हॉस्टल का सर्टिफिकेट जरूरी है)।
- ⚠️ टैक्स (Tax Trap): ध्यान रहे, CEA की पूरी रकम टैक्स-फ्री नहीं है। केवल ₹100 प्रति महीना ही टैक्स-फ्री है, बाकी रकम पर टैक्स लगेगा।
Verified By: Central Pay Analyst
Context: Academic Year 2025-26
✓ Updated Jan 2026