The Punjab Assembly has unanimously approved a key measure aimed at putting a check on rising fees in private schools across the state. The Punjab Regulation of Fee of Un-aided Educational Institutions (Amendment) Bill, 2026, passed on Monday, seeks to restrict annual fee hikes by unaided private educational institutions to a maximum of 5 per cent. The legislation was passed on the concluding day of the Monsoon Session of the Punjab Vidhan Sabha. Education Minister Harjot Singh Bains introduced the Bill in the House, which was subsequently approved unanimously.
What does the 5% fee cap mean for private schools?
Under the amended provisions, no unaided educational institution will be permitted to increase its fee by more than 5 per cent in a year. The measure is intended to provide greater predictability to parents and prevent steep annual increases in the overall cost of private school education.
Chief Minister Bhagwant Mann said the new provision will cover approximately 7,800 private schools across Punjab and directly benefit around 32 lakh students. Calling the decision a major relief for families, Mann said the 5 per cent ceiling will apply not only to tuition fees but also to the mandatory charges and funds collected by schools.
Which school charges will come under the cap?
The amended law takes a broad view of what constitutes a fee. This means schools cannot avoid the ceiling simply by increasing charges under different categories. The fee covered under the legislation includes tuition fees, development fees, annual charges, activity charges, smart class or technology charges, transportation charges where transport has not been separately contracted, laboratory and library charges, examination charges and any other funds collected by the institution. The provision is significant for parents because the overall financial burden of school education can include several charges beyond the basic tuition fee.
Parents may get refunds for excessive fee hikes
The bill also introduces a provision concerning fee increases made over a longer period. According to the legislation, educational institutions will be required to refund parents if cumulative fee hikes have crossed 15 per cent during the preceding three years. This provision means that the authorities will not only look at the annual increase in isolation but will also take into account the combined rise in fees over a three-year period.
Bill amends 2016 fee regulation law
The latest legislation has been brought through an amendment to the Punjab Regulation of Fee of Unaided Educational Institutions Act, 2016. The passage of the amendment establishes the 5 per cent annual ceiling as the key change in the state's existing framework for regulating fees charged by unaided educational institutions. With the Assembly's unanimous approval, the Punjab government has sought to strengthen the regulation of private school fees and provide parents with greater protection against excessive fee increases.
Why the decision matters for parents
For families whose children study in private schools, the impact of fee hikes extends beyond tuition because several mandatory and school-related charges can add substantially to the annual education bill. By bringing these components within the scope of the fee ceiling, the amended law seeks to make the regulation more comprehensive. The government has estimated that the measure will cover about 7,800 private schools and benefit nearly 32 lakh students across Punjab, making it a significant policy intervention in the state's school education sector.
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