The Punjab government has introduced a new system to curb arbitrary fee hikes by private schools in the state. Under the new rules, unaided private schools will be allowed to increase their fees by a maximum of 5% in an academic year.
The Punjab Assembly passed the amendment bill related to the new fee regulations on August 10, 2026. Earlier, the government had implemented the system through an ordinance on July 13. According to the Punjab government, the move aims to reduce the growing financial burden of education on parents and bring greater transparency to the fee structure of private schools.
Several Types of Fees Covered Under the Rules
The 5% cap will not be limited to tuition fees alone. Several other compulsory charges collected by schools will also come under the new regulations. These include development fees, annual charges, activity fees, smart class and technology charges, laboratory fees, library fees and examination fees. In certain circumstances, transportation charges may also be included while calculating the overall fee increase. The objective is to prevent schools from increasing different charges separately and taking the total fee hike beyond the 5% limit.
Approval Required for Fee Hikes Above 5%
If a private school believes it needs to increase its fees by more than 5%, it will have to seek prior approval from the district-level regulatory authority.
The school will be required to explain the reasons for the proposed increase and submit relevant financial information. Authorities will examine whether the proposed hike is justified in view of the school’s actual expenses and the facilities being provided to students.
If necessary, the school’s financial records may also be subjected to a forensic audit.
Previous Three Years’ Records Can Also Be Examined
The new system will not only monitor future fee increases. The fee records of schools for the previous three years may also be examined.
If a school has increased its overall fees by more than 15% during this period, the additional amount collected may be reviewed. In cases where schools are found to have charged amounts beyond the prescribed limits, provisions have been made for refunds to parents.
Around 7,800 Private Schools to Come Under the Rules
According to the Punjab government, the new fee regulations will affect around 7,800 private schools across the state. Approximately 32 lakh students studying in these schools may be affected by the new system, which could have a direct impact on their families. The Punjab government has said that the main objective of the policy is to reduce the financial burden on parents caused by repeated increases in school fees and other essential charges at the beginning of every academic session.
Parents Free to Buy Books and Uniforms from Their Choice of Vendors
Under the new rules, schools will not be allowed to force parents to purchase uniforms from a particular shop. Schools may specify the colour, design and other required standards of the uniform, but parents will be free to purchase it from a vendor of their choice. Similarly, schools will not be allowed to force parents to purchase books or other study materials from a particular shop or publisher. Schools will have to provide at least three options of shops or publishers.
Fines and Strict Action for Violations
Private schools that fail to comply with the fee regulations may face penalties. For a first violation, a fine of up to ₹50,000 may be imposed. In case of a repeat violation, the fine may increase to up to ₹1 lakh. Schools that repeatedly or seriously violate the rules may face stricter action. This could include cancellation of the school’s recognition or licence.