Annual fee increase capped at five percent, prior approval mandatory for any hike beyond limit

Chandigarh, June 22: In a major decision aimed at protecting the interests of students and parents, the Punjab Cabinet led by Chief Minister Bhagwant Singh Mann on Monday approved an ordinance to regulate fee hikes by private unaided schools in the state.

According to the Chief Minister’s Office, the Cabinet gave its nod to bring the Punjab Regulation of Fee of Unaided Educational Institutions (Amendment) Ordinance, 2026, to check unnecessary and unreasonable increases in fees by private unaided schools.

The ordinance has been brought by amending the Punjab Regulation of Fee of Unaided Educational Institutions Act, 2016. The move is aimed at ensuring effective control over fee hikes and protecting students and parents from arbitrary increases in school fees.

The proposed amendments seek to bring more clarity in the definitions of fee, fee enhancement and cumulative fee enhancement. The ordinance also provides for a cap of five percent on the annual fee hike by unaided schools.

As per the new provisions, any school seeking to increase fees beyond five percent will be required to obtain prior approval from the regulatory body. The government said the decision will help ensure transparency and accountability in the fee structure of private unaided educational institutions.

Hindusthan Samachar / GURSHARAN SINGH