There is a very relieving news for lakhs of employees working in Indian Railways. The Ministry of Railways has revised the rates of hostel subsidy to facilitate the education of children of its employees. After the increase in Dearness Allowance (DA), the government has taken this big step, which will provide direct financial help to those railway workers whose children are studying away from home.

Hostel subsidy increased, now you will get so much money

Under the new revised system implemented by the Railway Ministry, railway employees can now claim hostel subsidy of up to ₹8,437.50 per month for their children. This increase has been made in accordance with government rules after the dearness allowance is more than 50 percent. The main objective of this initiative is to reduce the burden of education and housing expenses on the employees in the era of rising inflation.

Who will get the benefit of this scheme and how?

As per railway rules, this facility is available only to regular and working railway employees. An employee can avail this subsidy for maximum two of his children. The condition for this is that the child should be studying in a hostel or residential school of a recognized institute. Subsidy claim is generally made once in the academic year, hence employees are advised to have all their required documents ready in time so that there is no delay in the process.

Scope of study and other important rules

The benefit of hostel subsidy is for students from nursery to class 12th. Apart from this, students living in hostels in the first two years of ITI, Polytechnic or Engineering Diploma after 10th can also get this benefit with conditions. However, the Railway Ministry has clarified that the benefit of both ‘Children’s Education Allowance’ (CEA) and ‘Hostel Subsidy’ cannot be availed simultaneously for the same child. If the child is in a hostel, he will get only subsidy. Apart from this, Railways has made special provisions regarding the education of disabled children, so that financial constraints do not become a hindrance in their education.