Governor approves Punjab law to regulate private school fees, caps annual hike at 5%

The ordinance, which was approved by the Punjab Cabinet last month, limits annual fee increases by unaided private schools to 5 per cent.

Governor approves Punjab law to regulate private school fees, caps annual hike at 5%

Image: IANS

Private schools in Punjab will no longer be allowed to increase annual fees beyond a prescribed limit after Governor Gulab Chand Kataria approved the state government’s ordinance regulating fee revisions in unaided educational institutions on Monday.

Announcing the development in a post on X, Chief Minister Bhagwant Mann thanked the Governor for approving what he described as a landmark decision in the interest of students and parents. “Heartfelt thanks to the Governor for putting his seal on our government’s major decision taken in the interest of Punjab’s children and parents,” Mann wrote.

Advertisement

In a separate post, the Chief Minister said the Governor had signed The Punjab Regulation of Fee of Unaided Educational Institutions (Amendment) Ordinance, 2026, paving the way for a cap on annual fee hikes by private schools. “With the implementation of this ordinance, no private school will be able to increase its fee by more than five per cent on its own,” Mann said, adding that the government was committed to ensuring that “education does not become a business” and to reducing the financial burden on ordinary families.

The ordinance, which was approved by the Punjab Cabinet last month, limits annual fee increases by unaided private schools to 5 per cent. Officials said any institution seeking a higher revision must obtain prior approval from a government-appointed committee after a financial audit and justification of the proposed increase.

The government said the 5 per cent ceiling would apply to the overall fee structure, including tuition and other mandatory charges such as development, building and annual funds. Schools granted permission for a higher increase will also be required to notify parents in advance.

Education Minister Harjot Singh Bains said schools that had collected fees beyond the permissible limit during the past 36 months would be required to refund the excess amount to parents. “The government will ensure compliance with the new provisions and monitor the refund process,” he said.

Under the ordinance, schools that violate the fee regulations may face fines ranging from ₹50,000 to ₹5 lakh, depending on their category and the nature of the violation. Repeated breaches could result in suspension or cancellation of recognition.

The provisions will apply to all unaided private schools in Punjab, including institutions affiliated with the Punjab School Education Board (PSEB), CBSE, ICSE and other recognised education boards.

Advertisement