Punjab Government Caps Private School Fee Hikes at 5%, Excess Charges to Be Refunded

June 21, 2026

In a landmark move aimed at protecting parents from arbitrary fee increases, the Punjab government has announced a strict regulatory framework that will cap annual fee hikes by private schools at a maximum of 5 percent. The decision, announced by Chief Minister Bhagwant Singh Mann, is being described as one of the toughest measures against unjustified fee increases in the country.

The proposed legislation will be introduced during the upcoming session of the Punjab Legislative Assembly and will apply to all private schools operating in the state.

Excess Fees Collected Over Three Years to Be Refunded

Under the new policy, private schools that have increased fees by more than 15 percent over the last three years will be required to refund the excess amount collected from parents. The government has also proposed stringent penalties for violations, including hefty fines and the possible cancellation of a school’s recognition in severe cases.

Chief Minister Mann said the decision was taken in response to widespread concerns raised by parents regarding the rising cost of education and arbitrary fee hikes by private institutions.

5% Cap to Cover All Mandatory Charges

Significantly, the 5 percent limit will not be restricted to tuition fees alone. It will also apply to all mandatory charges, funds, and other fees collected by schools. The move is intended to prevent institutions from bypassing regulations by increasing non-tuition charges and placing additional financial burdens on families.

“The exploitation of parents and students in the name of education will not be tolerated,” the Chief Minister said, adding that no school would be granted exemptions under the proposed rules.

Ordinance to Be Introduced Soon

The Chief Minister announced that the state government will soon bring an ordinance to ensure the effective implementation of the new policy. He emphasized that the measure is designed to restore transparency and accountability in the education sector while safeguarding the interests of students and their families.

According to Mann, the unchecked fee hikes witnessed in recent years became possible after amendments made to the Punjab Regulation of Fees of Unaided Educational Institutions Act, 2016 by the previous government in 2019, which weakened existing safeguards.

Government to Review Pending Complaints

Addressing a press conference, the Chief Minister said that all pending complaints related to excessive fee hikes would now be thoroughly investigated. Regulatory authorities will monitor schools closely and ensure that any increase in fees is justified by genuine operational costs or developmental needs rather than profit-making motives.

He pointed out that the original 2016 law had clearly stated that fee increases should not exceed 8 percent of the previous year’s fees. However, subsequent amendments diluted this provision, resulting in inadequate oversight and growing financial pressure on parents.

Relief for Lakhs of Families

The government believes the new law will provide substantial relief to lakhs of families across Punjab by bringing greater transparency to school fee structures and eliminating uncertainty over annual fee increases.

Calling it a historic reform, Chief Minister Mann said the legislation would protect parents from exploitation, reduce financial stress on households, and ensure that access to quality education remains fair and affordable for all.

“This will be the strictest law in the country against arbitrary fee hikes by private schools. Every institution will be accountable, and the interests of students and parents will remain our top priority,” he said.