The Punjab Government has brought major changes to the rules for private schools by implementing the Punjab Regulation of Fee of Unaided Educational Institutions (Amendment) Ordinance, 2026 and the ordinance received the Governor's approval and has come into effect immediately, according to the state government, the new rules aim to stop arbitrary fee hikes, improve transparency, and protect the interests of students and parents, the changes are expected to affect around 7,800 private schools and more than 32 lakh students across Punjab.
Here are the 10 biggest changes explained in simple words.
1. Annual fee hike cannot be more than 5%
Private unaided schools in Punjab can no longer increase annual fees by more than 5% without approval and if any school wants to increase fees beyond this limit, it must first get permission from the District Regulatory Committee, this rule has been introduced to prevent sudden and excessive fee hikes.
2. Parents may get a refund of excess fees
The government has also announced relief for many parents and if a private school has increased its fees by more than 15% during the last three years, the excess amount may have to be returned to parents after verification under the new rules.
3. The 5% limit includes almost every mandatory charge
The new ordinance makes it clear that the fee limit is not limited to tuition fees alone, charges collected under different names, such as transport fees, building fund, annual charges, and other compulsory fees, will also be treated as part of the total fee and this is aimed at preventing schools from increasing costs through different fee heads.
4. Schools must upload fee records of the last four years
To improve transparency, every private school will have to upload details of its fee structure for the last four years on the government portal, according to the government, these records must be uploaded within 10 days which will help authorities and parents compare fee structures more easily.
5. District committee will examine fee hike proposals
Any proposal to increase fees beyond the allowed limit will be examined by a District Regulatory Committee headed by the Deputy Commissioner (DC), the committee will review the proposal before granting approval which means schools cannot independently decide large fee increases.
6. Forensic audit can be ordered
If complaints are received that a school has collected excessive fees, the government can order a forensic audit and this audit will examine the school's financial records and fee structure to determine whether the charges were justified under the rules.
7. Strict penalties for breaking the rules
The ordinance also introduces penalties for schools that violate the rules.
According to the government:
The first violation can attract a fine of ₹50,000.
The second violation can lead to a ₹1 lakh fine.
Repeated violations can result in cancellation of the school's recognition and these penalties are intended to ensure compliance with the new regulations.
8. Statewide probe into EWS admissions
Apart from fee regulation, the Punjab Government has ordered a statewide inquiry into admissions under the Economically Weaker Section (EWS) quota in private schools, Deputy Commissioners of all districts have been directed to inspect admission records and submit reports within 30 days after receiving complaints of alleged irregularities and according to the government, the inquiry will check whether private schools have followed reservation rules properly.
9. Schools violating EWS rules may face action
The government has said that schools found violating EWS admission rules may face strict action and this may include financial penalties, cancellation of recognition, and cancellation of their No Objection Certificate (NOC), depending on the nature of the violation, the investigation will be based on the records examined by district authorities.
10. Government will check implementation of the 25% reservation
The inquiry will also verify whether private schools have correctly implemented the 25% reservation required under the Right to Education (RTE) Act, 2009.
According to the government:
12.5% seats are reserved for children from the Economically Weaker Section (EWS).
12.5% seats are reserved for children from disadvantaged groups.
Officials will examine admission records to ensure these provisions have been followed correctly.
The Punjab Government says the ordinance is aimed at making private school fee regulation more transparent and ensuring that schools follow the prescribed rules for both fee collection and admissions and the new provisions have come into force immediately following the Governor's approval, while the ordinance will later need approval from the Punjab Legislative Assembly to continue as law.