The Punjab government has introduced a new cap on annual fee hikes in private schools. With Governor Gulab Chand Kataria approving the ordinance on Monday, schools can no longer raise fees by more than 5 per cent in a year.
For several years, parents have complained about private schools imposing steep fee hikes without appropriate justification. The government said loopholes in the existing rules allowed some institutions to charge higher fees. The new ordinance, , officially named the Punjab Regulation of Fee of Unaided Educational Institutions (Amendment) Ordinance, 2026, has been introduced to regulate fee increases.
Under the amended law, unaided private schools cannot increase fees by more than 5 per cent in a year. Earlier, the permissible limit was 8 per cent, though many schools were accused of exceeding even that.
For example, if a school currently charges an annual fee of Rs 8,200, it can now increase it by only Rs 410, taking the total fee to Rs 8,610 for the next academic year.
The 5 per cent cap applies not only to tuition fees but also to other compulsory charges such as development fees, building funds and annual charges. The total increase under all these heads cannot exceed the prescribed limit.
Schools that believe a higher increase is necessary must seek permission from a special committee. The panel will include a Divisional Commissioner, two District Education Officers and a financial expert.
Schools will have to submit their application at least six months in advance, explaining the reasons for the proposed increase, such as new infrastructure or additional facilities.
The committee will first order a financial audit of the school. Only after examining the audit report will it decide whether the request for a higher fee hike is justified.
If a fee increase is approved, schools will be required to inform parents well in advance. The provision aims to ensure families have enough time to plan their finances before the revised fees come into effect.
Education Minister Harjot Singh Bains said schools that collected fee increases of more than 15 per cent during the past 36 months will have to refund the excess amount to parents once the ordinance is implemented. The government said it will monitor the refund process.
Schools violating the ordinance will face financial penalties. Repeated violations could also result in the cancellation of their recognition or registration.
The penalties are:
• Primary schools: Rs 50,000 for the first violation and Rs 1 lakh for the second.
• Middle schools: Rs 1 lakh for the first violation and Rs 3 lakh for the second.
• Senior secondary schools: Rs 2 lakh for the first violation and Rs 5 lakh for the second.
Schools that repeatedly violate the rules may also lose official recognition.
The ordinance applies to all unaided private schools in Punjab, irrespective of the education board they are affiliated with. This includes schools under PSEB, CBSE, ICSE and other recognised boards.
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