Punjab Cabinet Approves Ordinance Against Arbitrary School Fee Hikes; Violators Risk Derecognition
June 22, 2026
Mohali: No private educational institution in Punjab will be able to increase fees by more than 5% (percent) annually. An ordinance to this effect was approved at a cabinet meeting. It has been sent to the Governor for final approval.
This information was given by Punjab Finance Minister Harpal Singh Cheema and Education Minister Harjot Singh Bains after a cabinet meeting. They said that any school that has increased fees by more than 15 percent in the last 36 months will be required to refund the money to parents.
He said that if any school wants to increase fees by 5%, a committee has been formed to do so. Schools must apply six months in advance. They must also conduct a financial audit and explain why they have increased fees.
All schools must disclose their fixed fees two months before the start of each academic session. This rule applies to the Punjab School Education Board, CBSE, ICSE, and international boards.
This process of increasing fees by more than 5 percent
- Committee formed for schools: Education Minister Harjot Singh Bains stated that if any educational institution wishes to increase fees by more than 5 percent, it must follow a set procedure. A committee has been formed for this purpose, consisting of the divisional commissioner, two DEOs (District Education Officers), and a financial expert.
- The reason for the fee increase must be stated: At least six months before the fee increase, the institution must submit an application explaining the need for a fee increase. For example, if the school has introduced a new facility or constructed a new building, complete details must be provided.
- A final decision will be based on the audit report: However, simply submitting an application will not grant permission to increase fees. A committee will decide whether or not to increase fees. The committee will not make a direct decision, but will first conduct a financial audit of the institution. Further action and a final decision will be made based on the audit report.