Hostel Subsidy

  • Hostel Subsidy means reimbursement of expenses incurred by the Railway employee if he/she keeps his/her children in a hostel of a residential school/institution located beyond a distance of 50 kilometers from his/her residence. (Ref 3 & 8)
  • It may include expenses towards boarding, lodging and other expenses permitted for Children Education Allowance (See below). (Ref 3)     
  • Hostel subsidy will be reimbursed upto the maximum limit of Rs.3750 per month per child subject to a maximum of eldest two surviving children. However, both hostel subsidy and Children Education Allowance cannot be availed concurrently. (Ref 1, 5&7)
  • Rates of Hostel Subsidy for disabled children of Government employees shall be Rs. 7500/- per child month from 1st January, 2011. (Ref 7)
  • Hostel subsidy is reimbursable only in case of child studying in a residential school and staying in hostel of the said residential school.(Ref 8)
  • Children attending day boarding are not eligible to draw hostel subsidy. (Ref 3)
  • Hostel subsidy shall be admissible to a Govt. servant under suspension or on leave ( including extra ordinary leave). However any period which is treated as ‘dies non’ the Govt. servant shall not be eligible for the Subsidy for the period. (Ref 3)
  • No transfer condition is attached for grant of Hostel Subsidy (Ref 4)
  • Dying in harness - If a Govt. servant dies while in service, the hostel subsidy shall be admissible in respect of his/her 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 Govt. servant was working prior to his death. (Ref 6)
  • For the purpose of hostel subsidy, station would be demarcated by the first three digits of the PIN Code of the area where the Railway employee is posted and/or residing. The first three digits of the PIN Code indicate a Revenue District. (Ref 6)

Items permitted for reimbursement

  • Tution Fee
  • Admission fee
  • Laboratory fee
  • Special fee charged for agriculture, electronics, music or any other subject.
  • Fee charged for practical work under the programme of work experience.
  • Fee paid for the use of any aid or appliance by the child.
  • Library fee
  • Games/sports fee.
  • Fee for extra-curricular activities.
  • Reimbursement for purchase of one set of text books and notebooks in an academic year.
  • Reimbursement for purchase of two sets of uniforms and one set of school shoes in an academic year.
  • Vidyalya Vikas Nidhi charged by Kendriya Vidyalayas.
  • CEA may be allowed in case of children studying through “Correspondence or Distance Learning” also.
  • Development Fee/Parents’ Contribution charged by the school/institution in lieu of tuition fee.
  • Fee charged directly by the school/institution for catering to the special needs of the child with disabilities, duly certified by the school authorities.


1.   Railway Board’s letter No. E(W)2008/ED-2/4 dated 1.10.2008 (RBE No.135 /08) PC-VI No. 24

2.   Railway Board’s letter No. E[W]2008/ED-2/5 dated 13.10.2008    (RBE No. 150/08) [PC-VI No. 33]

3.   Railway Board's letter No. E[W]2008/ED-2/4 dated 18/19.12.2008 (RBE No. 197/08)

4.   Railway Board's letter No.E(W)2008/ED-2/4 dated 6.11.2009 [RBE No.198/09] PC-VI No.158)

5.   Railway Board's letter No.E(W)2008/ED-2/4 dated 10.6.2009 [RBE No.100/09] PC-VI No.109/09

6.   Railway Board’s letter No. E(W) 2008/ED-2/4 dated 22.02.2011 (RBE No. 25/2011), PC-VI No. 249

7.   Railway Board’s letter No. E(W)2008/ED-2/4 dated 01.06.2011 (RBE No. 78/2011) (PC-VI 261) 

8.   Railway Board’s letter No. E(W2008/ED-2/4       Dated          07.06.2013 (RBE No.  55/2013) PC-VI No.319