Private School Fee Hike Capped At 5%
The Punjab Assembly has unanimously passed the Punjab Regulation of Fee of Un-aided Educational Institutions (Amendment) Bill, 2026, putting a 5% annual cap on fee increases by private unaided schools.
The Bill amends the Punjab Regulation of Fee of Unaided Educational Institutions Act, 2016. Education Minister Harjot Singh Bains said private schools should not turn education into a profit-making enterprise and that parents should not be treated merely as customers.
Cap Covers More Than Tuition Fees
The 5% ceiling will apply to the overall fee charged by private unaided educational institutions. This includes tuition fees as well as development fees, annual charges, activity charges, smart class or technology charges, transportation, laboratory and library charges, examination charges and other compulsory contributions collected directly or indirectly.
Schools will therefore not be able to bypass the annual limit simply by increasing charges under separate fee categories.
Parents To Get Refunds If Hike Exceeds 15%
One of the key provisions requires schools to refund excess amounts to parents if the cumulative fee increase has exceeded 15% over the previous three years.
The provision is intended to address cases where fee increases over multiple years have resulted in a significant rise in the overall financial burden on families.
Schools Must Give 90 Days’ Notice
The Bill also requires private schools to prominently display their revised fee structure at the institution as well as on their website at least 90 days before the beginning of the academic year.
Schools will also be prohibited from forcing or inducing students and parents to purchase uniforms, books or other items from a particular source.
If a school wants to increase its fees by more than the prescribed limit, it will have to approach the regulatory mechanism and obtain approval.
Bill Could Cover 7,800 Private Schools
Chief Minister Bhagwant Mann said the legislation will cover around 7,800 private schools across Punjab and directly benefit approximately 32 lakh students.
The government said the legislation is aimed at protecting parents from arbitrary fee increases and bringing greater transparency to the fee structures of private educational institutions.
Opposition Raises Questions
While Congress MLA Pargat Singh welcomed the reduction in the proposed annual fee hike from 8% to 5%, he questioned the government’s record on regulating private schools and refunding excess fees.
Other Opposition members also questioned why the government had brought amendments to legislation originally introduced in 2016, with rules framed in 2017. Concerns were also raised about the proposed regulatory mechanism and whether parents, teachers, non-teaching staff and school managements would have adequate representation.
Despite the objections, the Bill was passed unanimously by the Assembly.
Summary
The Punjab Assembly has unanimously passed a Bill limiting annual fee hikes by private unaided schools to 5%. The cap covers tuition, development, annual, activity, technology, transport, laboratory, library and examination charges. Schools must refund excess fees when cumulative hikes exceed 15% over three years, display revised fees 90 days in advance and cannot force parents to buy items from a particular source. The law will cover around 7,800 schools and 32 lakh students.
