Punjab Caps Private School Fee Hike At 5 Per Cent, Sets Strict New Norms

The Punjab Cabinet has approved an ordinance capping annual fee hikes in private schools at 5 per cent , a move aimed at bringing uniformity and control over rising education costs. The decision, taken at a meeting chaired by Chief Minister Bhagwant Mann , will be sent to the Governor for approval .

Under the new rule, private schools will be allowed to increase fees only up to 5 per cent per annum , covering not just tuition but all mandatory charges and funds . Officials said the step is designed to ensure transparency, accountability, and relief for parents facing rising education expenses.

Education Minister Harjot Singh Bains said the government has also introduced a corrective measure for past increases. Schools that had raised fees by more than 15 per cent in the last three years will be required to refund the excess amount collected . He added that any proposal to hike fees beyond the 5 per cent limit will be examined by a divisional commissioner-led committee , which will have the power to approve or reject requests based on justification provided by schools.

For parents , the decision is expected to bring financial predictability and relief , reducing sudden spikes in school expenses and improving household budgeting. For private schools , however, the move introduces stricter oversight, limiting their ability to independently adjust fees and requiring detailed justification for higher increases.

In contrast, Andhra Pradesh and Telangana continue to follow a regulatory approval-based system rather than a fixed cap. In these states, private schools must seek approval from fee regulatory committees , and fee hikes are examined on a case-by-case basis. While authorities can intervene against excessive increases, there is no uniform annual percentage ceiling like in Punjab.

This makes Punjab’s model more structured and restrictive , whereas AP and Telangana maintain a flexible regulatory framework with committee-based oversight .

Overall, the Punjab decision represents a shift towards a strict fee control mechanism , aiming to balance educational affordability for parents with regulated operational freedom for schools.