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Punjab Ordinance Caps Private School Fee Hikes at 5% and Orders Three-Year Refunds

Private school groups warn the retroactive refund rule will destabilize school finances and say they will seek relief in the Punjab and Haryana High Court.

Overview

  • The state government issued an ordinance setting a 5% annual cap on private school fee increases and instructing schools to refund any excess fees collected over the past three years, a move reported in coverage on Tuesday.
  • Two major bodies, the National Independent Schools Alliance and RASA Punjab, held a joint press conference to oppose the measure and demanded consultations with parents, educationists and financial experts.
  • The associations say the ordinance’s retrospective refund requirement will create a large one-time cash burden, especially for low-fee schools still repaying pandemic-era loans, and could force some closures.
  • Schools say they had budgeted under the earlier norm that allowed up to 8% annual fee revisions and warn the new cap will squeeze teacher salary revisions and harm education quality.
  • The groups cited data that about 3.06 million students attend private schools in Punjab and roughly 1.46 lakh teachers work there, raising doubts about whether the public system can absorb displaced students if private schools weaken.