Children Education Allowance calculator

Work out your Children Education Allowance and Hostel Subsidy for up to two children, at the current rates, per month and per year.

Updated 8 September 2026

This calculator works out your Children Education Allowance and Hostel Subsidy. Children Education Allowance is a fixed monthly amount a central government employee is reimbursed towards the schooling of up to two children, and Hostel Subsidy is paid instead for a child in a residential hostel. Choose the claim for each child below; the total updates as you type. The amounts and a worked example follow.

Calculator

Child 1

Claim for this child CEA for a day scholar, or Hostel Subsidy, not both.

Divyang child (double CEA) Doubles CEA; the hostel subsidy is not doubled.

Child 2

Claim for this child A maximum of two children can be claimed.

Divyang child (double CEA) Doubles CEA; the hostel subsidy is not doubled.

Children Education Allowance is a fixed Rs. 2,812.50 a month per child, irrespective of the fees, on a certificate from the school; it is doubled for a divyang child. Hostel Subsidy is the actual boarding and lodging or Rs. 8,437.50, whichever is lower, and is not doubled. Both cover a maximum of two children, from nursery to Class 12; a child in a hostel draws the subsidy, not also CEA.

The amounts

Children Education Allowance under the 7th Central Pay Commission is a fixed monthly amount per child, not linked to the fees actually paid. The base rate was Rs. 2,250 a month, and under DoPT Office Memorandum No. A-27012/02/2017-Estt.(AL) dated 17 July 2018 it rises 25% each time dearness allowance crosses a further 50%. Dearness allowance crossed 50% on 1 January 2024, so the allowance is now Rs. 2,812.50 a month per child, that is Rs. 33,750 a year, under the enhancement order of 25 April 2024. A differently abled, or divyang, child draws CEA at double the rate, Rs. 5,625 a month.

Hostel Subsidy

For a child in a residential hostel, Hostel Subsidy is paid in place of Children Education Allowance. Unlike CEA, it is not a flat amount: it is the actual monthly boarding and lodging, or Rs. 8,437.50, whichever is lower, a point the corrigendum of 30 June 2026 made explicit. So a child whose hostel charges Rs. 6,000 a month draws Rs. 6,000, while one charged Rs. 12,000 draws the Rs. 8,437.50 ceiling. The Hostel Subsidy is not doubled for a divyang child; only Children Education Allowance is.

Who and how many

The allowance covers a maximum of the two eldest surviving children. There are two exceptions to the two-child limit: a third child where the second birth resulted in twins or a multiple birth, and a child born of the first failure of a sterilisation operation. It covers schooling from nursery to Class 12, including two years of pre-primary or nursery. For any one child in a given period you draw either CEA or Hostel Subsidy, not both, though across two children one may draw CEA and the other Hostel Subsidy.

Certificate, not receipts

Because Children Education Allowance is a fixed amount, you do not submit itemised fee receipts. You produce a certificate from the head of the institution that the child studied there in the year, and where that is not available a self-attested copy of the report card or a fee receipt suffices. Hostel Subsidy needs a similar certificate that the child stayed in the hostel.

Tax treatment

The reimbursement is part of salary and is taxable, and from 1 April 2026 the old-regime exemption covers all of it. Serials 7 and 8 of the Table in rule 280(2) of the Income-tax Rules, 2026 exempt Rs. 3,000 a month per child for education and Rs. 9,000 a month per child for hostel expenditure, for up to two children, against reimbursements of Rs. 2,812.50 and Rs. 8,437.50. The exemption runs in the old regime alone: Section 202(2)(a)(ii) of the Income-tax Act, 2025 computes default-regime income without it. The pre-2026 figures, which govern the return for the financial year 2025-26, were Rs. 100 and Rs. 300 a month per child under Section 10(14)(ii) read with Rule 2BB.

A worked example

Take an employee with two children, both day scholars. Each draws Children Education Allowance of Rs. 2,812.50 a month, so the total is Rs. 5,625 a month, that is Rs. 67,500 a year. Now take an employee with one day scholar and one child in a hostel charging Rs. 10,000 a month. The day scholar draws Rs. 2,812.50, and the hostel child draws Rs. 8,437.50, the ceiling being lower than the Rs. 10,000 charged, so the total is Rs. 11,250 a month. If instead the hostel charged Rs. 6,000, the hostel child would draw Rs. 6,000, and the total Rs. 8,812.50 a month.

Notes and scope

The calculator applies the rates in force from 1 January 2024. The figures are on the 7th CPC structure; an 8th Central Pay Commission has been announced but not implemented, so no new rates are in force. Both allowances are sanctioned by your office on the certificate you produce. For the rules behind the allowance, see the children education allowance article.

Frequently Asked Questions (FAQs)

How much is Children Education Allowance?

Children Education Allowance is Rs. 2,812.50 a month per child, a fixed amount irrespective of the actual fees, since the 25% enhancement that followed dearness allowance crossing 50% on 1 January 2024. It is admissible for up to two children, from nursery to Class 12.

What is the Hostel Subsidy and how much is it?

Hostel Subsidy is paid for a child in a residential hostel, in place of Children Education Allowance. It is the actual monthly boarding and lodging or Rs. 8,437.50, whichever is lower, so a child whose hostel charges Rs. 6,000 a month draws Rs. 6,000, not the full ceiling.

How many children can I claim for?

A maximum of the two eldest surviving children, with two exceptions: a third child where the second birth resulted in twins or a multiple birth, and a child born of the first failure of a sterilisation operation. Otherwise the limit is two children.

Do differently abled children get a higher allowance?

Yes, for Children Education Allowance. A differently abled, or divyang, child draws CEA at double the rate, that is Rs. 5,625 a month. The Hostel Subsidy, however, is not doubled; a disabled child in a hostel draws the actual boarding and lodging up to the usual Rs. 8,437.50 ceiling.

Do I need to submit fee receipts?

No. Children Education Allowance is a fixed amount and is not linked to the fees actually paid, so no itemised fee receipts are needed. You produce a certificate from the head of the institution that the child studied there in the year, or a self-attested report card or fee receipt where that is not available.

Is Children Education Allowance taxable?

The reimbursement is part of salary and is taxable, but from 1 April 2026 the old-regime exemption covers it: Rs. 3,000 a month per child for education and Rs. 9,000 a month per child for hostel, for up to two children, at serials 7 and 8 of the Table in rule 280(2) of the Income-tax Rules, 2026. Against Rs. 2,812.50 and Rs. 8,437.50 of reimbursement nothing is left taxable, except on the double rate of Rs. 5,625 for a divyang child. The exemption is available under the old regime only, not the default regime.

External references

References

DoPT Office Memorandum No. A-27012/02/2017-Estt.(AL) dated 17 July 2018 (consolidated 7th CPC instructions): CEA a fixed amount per child, Hostel Subsidy up to a ceiling, double CEA for a divyang child, two eldest surviving children, nursery to Class 12, and a 25% rise each time DA crosses a further 50%.
DoPT OM No. A-27012/01/2023-Pers.Policy(Allowance) dated 25 April 2024 (25% enhancement from 1 January 2024: CEA Rs. 2,812.50, Hostel Subsidy Rs. 8,437.50, double CEA Rs. 5,625) and the corrigendum dated 30 June 2026 (Hostel Subsidy the actual boarding and lodging or Rs. 8,437.50, whichever is lower).
Income-tax Act, 2025, Schedule III Table serial 13 and Section 202(2)(a)(ii), read with rule 280(2), Table serial numbers 7 and 8, of the Income-tax Rules, 2026 (education exemption Rs. 3,000 per month per child, hostel exemption Rs. 9,000 per month per child, up to two children, old regime only).