Punjab Govt moves to cap School fees at 5%, orders draft law to end arbitrary hikes
Babushahi Bureau
Chandigarh, June 4, 2026: In a swift policy response within 24 hours of Chief Minister Bhagwant Singh Mann’s announcement, the Punjab Government has initiated the process to draft legislation aimed at regulating fee structures in private schools and preventing arbitrary fee hikes.
School Education Minister Harjot Singh Bains has written to the Secretary, School Education Department, directing the department to fast-track the preparation of a comprehensive legal framework to enforce transparency, accountability, and fee regulation across private educational institutions in the state.
The proposed law will cap annual fee increases at 5% and mandate refunds from schools that have exceeded the 15% cumulative fee hike threshold over the past three years. The government has stated that the move is intended to protect more than 32 lakh students studying in approximately 7,800 private schools across Punjab.
Reiterating the government’s stance, Education Minister Harjot Singh Bains said the initiative is aimed at ensuring affordable and accessible education.
He added that schools must operate with greater transparency and that education cannot be treated as a commercial enterprise driven by profit motives.
“The Chief Minister has made it clear that profiteering in education will not be tolerated. This reform is aimed at safeguarding parents from unjustified financial burden while ensuring accountability in the system,” Bains said.
The Minister further stated that the proposed framework will be placed before the Cabinet for approval after detailed drafting by the department. He emphasized that the government considers the matter a top priority and is committed to implementing strong regulatory safeguards.
The legislation will also introduce retrospective relief for parents. Schools that have exceeded permitted fee hike limits over the last three years will be required to refund the excess amount collected from students’ families.
The Punjab Government said the move aligns with the principle that education is a public good and not a commercial commodity, citing legal precedents that discourage profiteering in the education sector.
Officials added that the new law aims to establish a structured regulatory mechanism to ensure fee rationalisation, transparency in financial disclosures, and stronger oversight of private schools.
The government also criticised earlier regulatory provisions introduced in 2019, which allowed schools to revise fees with minimal oversight, stating that such rules led to unchecked fee increases and financial pressure on parents.
With the proposed reforms, the Bhagwant Mann-led government seeks to overhaul the fee regulation system and ensure greater protection for students and families across Punjab.