Punjab Govt Caps Private School Fee Hikes at 5% Per Year
The Punjab government has approved an ordinance that limits annual fee increases by private unaided schools to a maximum of five per cent. The decision, taken during a Cabinet meeting chaired by Chief Minister Bhagwant Mann, aims to curb arbitrary fee hikes and protect the interests of students and parents.
According to an official statement from the Chief Minister's Office, the Cabinet gave its nod to bring the Punjab Regulation of Fee of Un-aided Educational Institutions (Amendment) Ordinance, 2026. The ordinance amends the existing Act of 2016, which previously lacked explicit caps on fee increments. The move is intended to ensure transparency and accountability in fee structures across private schools in the state.
Key provisions of the ordinance include clearer definitions of 'fee', 'fee enhancement', and 'cumulative fee enhancement'. The amendment mandates that any fee hike beyond five per cent must receive prior approval from the regulatory body. This is expected to provide a check against excessive increases that have burdened families.
In a separate decision, the Cabinet also approved changes to the 2019 guidelines for disbursing capital subsidy and investment incentives under the state's industrial policies. The revised framework will release capital subsidy to industrial units that become eligible after the omission of certain clauses, subject to verification of documents and fulfilment of prescribed conditions. This is aimed at boosting industrial development in Punjab.
The ordinance comes amid growing concerns over the rising cost of education in private schools. Many parents had complained of steep fee hikes without adequate justification. The government's action is seen as a step towards regulating the sector and providing relief to families.
Private school associations have expressed mixed reactions. Some have welcomed the clarity, while others argue that the cap may affect their ability to maintain quality and cover rising operational costs. The government has assured that the regulatory body will consider genuine needs for increases beyond five per cent on a case-by-case basis.
The ordinance will be in effect from the upcoming academic year. It applies to all unaided private schools in Punjab, including those affiliated with national and international boards. Schools found violating the cap may face penalties, including revocation of recognition.
The Punjab Regulation of Fee of Un-aided Educational Institutions Act, 2016, was originally enacted to bring transparency to fee structures, but its implementation faced challenges. The latest amendment strengthens the law by providing specific numerical limits and clearer procedures. Experts believe this could serve as a model for other states grappling with similar issues.
