PTC Web Desk: Parents across Punjab have reason to breathe easy. Private schools in the state can no longer raise their fees by more than 5 percent in a single year. Governor Gulab Chand Kataria on Monday gave his approval to a new government ordinance. 

Why this law came about

Complaints against private schools over steep annual fee hikes have been piling up for years, with many parents alleging that institutions were increasing charges without justification. Officials say gaps in the earlier rules allowed several schools to overcharge students, prompting the state to tighten the framework through this fresh ordinance, officially named the Punjab Regulation of Fee of Unaided Educational Institutions (Amendment) Ordinance, 2026.

How much can schools actually increase fees now?

Under the new rule, no unaided private school can raise its fees by more than 5 percent annually,  down from the earlier permissible limit of 8 percent, which many schools were still found exceeding. For instance, a school currently charging an annual fee of Rs 8,200 can raise it by only Rs 410 under the new cap, taking the total to Rs 8,610 for the next academic session.

Importantly, this ceiling isn't limited to tuition fees alone. It also covers other mandatory charges such as building funds, development funds, and annual charges, the combined increase across all these heads cannot exceed 5 percent.

What if a school genuinely needs a bigger hike?

Schools that believe they need to raise fees beyond the 5 percent limit will have to apply to a dedicated committee comprising a Divisional Commissioner, two District Education Officers and a financial expert. The application must be submitted at least six months in advance, along with valid reasons,  such as a new facility or building , for the proposed hike.

Simply applying won't guarantee approval. The committee will first order a financial audit of the institution and only after reviewing the audit findings will it decide whether the hike is justified.

Parents must be informed in advance

Even after a fee hike gets the green light, schools will be legally required to notify parents well in advance. The idea is to give families enough time to plan their finances rather than being caught off guard by a sudden charge.

Can parents get a refund for past overcharging?

According to Education Minister Harjot Singh Bains, schools that collected more than a 15 percent fee increase over the past 36 months will now have to refund the excess amount to parents once the ordinance takes effect. The state government will monitor this refund process closely.

Penalties for schools that break the rules

Violators will face financial penalties and repeat offenders could even lose their recognition or registration. The penalty structure varies by school level:

Primary schools: Rs 50,000 for a first violation, Rs 1 lakh for a second

Middle schools: Rs 1 lakh for a first violation, Rs 3 lakh for a second

Senior secondary (up to Class 12) schools: Rs 2 lakh for a first violation, Rs 5 lakh for a second

Beyond repeated violations, schools risk losing their recognition altogether.

Which schools does this cover?

The new law applies to all unaided private schools operating in Punjab, regardless of the board they are affiliated with, including those under PSEB, CBSE, ICSE and other boards.

 
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- PTC NEWS

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