Punjab Caps Annual Fee Hike by Private Unaided Schools at 5% Through New Ordinance

Chandigarh, July 14, 2026: In a major move aimed at protecting parents from arbitrary fee increases and curbing the commercialisation of education, the Punjab Government has promulgated an ordinance limiting the annual fee hike by private unaided schools to a maximum of five per cent.

The ordinance, titled The Punjab Regulation of Fee of Unaided Educational Institutions (Amendment) Ordinance, 2026, received the approval of Punjab Governor Gulab Chand Kataria and comes into immediate effect across all private unaided educational institutions in the state.

Under the new legislation, private unaided schools will not be permitted to increase tuition fees or any other charges, including transport and building fees, by more than five per cent in a year without obtaining prior approval from the competent authority. The government said the measure is intended to bring greater transparency and accountability to the fee structure followed by private schools.

One of the most significant provisions of the ordinance requires schools that have increased fees by more than 15 per cent during the past three years to refund the excess amount collected from parents or adjust it against future fees. The provision seeks to provide relief to families who may have borne what the government considers excessive fee hikes.

The ordinance also introduces stringent penalties for violations. Schools found flouting the regulations may face substantial financial penalties, and in serious cases, the government may cancel the institution's recognition.

The Punjab Government said the ordinance has been enacted to safeguard the interests of parents and students by preventing arbitrary fee revisions while ensuring that educational institutions function in a fair and transparent manner.

The latest amendment is expected to have a significant impact on the state's private education sector, where fee hikes have frequently drawn criticism from parents and prompted demands for stronger government regulation. The government maintains that the new framework strikes a balance between the operational needs of private schools and the financial burden faced by families.

With the ordinance now in force, private unaided schools across Punjab will be required to align their fee structures with the new regulations, while the state government is expected to monitor compliance and take action against institutions that violate the provisions.

By Catholic Connect Reporter