Punjab private schools now face a strict limit on yearly fee increases. The Punjab Regulation of Fee of Unaided Educational Institutions (Amendment) Bill 2026 became law on August 10 . This new bill caps annual fee hikes at 5 percent .
Fee Hike Cap Details
The 5 percent cap applies to all school charges. This includes tuition fees. It also covers development fees. Annual charges are included. Activity charges fall under the cap. Technology and smart class fees are also limited. Transportation fees without separate contracts are included. Laboratory and library fees are capped. Examination fees are also part of this limit. Any other school-collected funds are subject to the cap.
Scope of the New Law
The Punjab government expects this law to benefit approximately 32 lakh students . The cap will affect nearly 7800 unaided schools across the state. Education Minister Harjot Singh Bains introduced the bill. Chief Minister Bhagwant Mann stated education is a public good. He emphasized it is not a profit-making business.
Past Fee Hikes and Penalties
The bill also addresses past fee increases. Schools that raised fees over 15 percent in the last three years must issue refunds. Parents will receive back the excess amount paid. The Punjab government will conduct forensic audits. These audits will identify schools that overcharged. Schools violating the new fee cap face penalties. A first offense incurs a Rs 50,000 fine . A second offense results in a Rs 1 Lakh fine . A third offense can lead to school affiliation cancellation.
Government's Stance
Chief Minister Mann stressed quality education access for all students. He declared this a top priority for the Punjab government. The new law aims to stop arbitrary fee jumps. It seeks to protect families from financial strain.
