From CPI-based adjustment to infrastructure: how other states regulate school fee norms

Indian Express

01-05-2025

The Delhi government's draft Bill for regulation of fee hike in private and government-aided private schools across the Capital draws on similar efforts made in other states, which have brought in several measures to tackle the issue.
On Tuesday, the Delhi Cabinet approved the draft of the Delhi School Education (Transparency in Fixation and Regulation of Fees) Bill, 2025, to regulate fees in such schools. The move came after months of protests by parents who have raised concerns about profiteering and charging of 'illegal, arbitrary' fees by private schools.
Official sources previously told The Indian Express that under the proposed Bill, the factors for determination of fee will be a school's location of the school, its education standard as prescribed by the government, the infrastructure and facilities its provides, expenditure on maintenance determined by the government, excess funds generated from NRIs or as part of charity, salary of teachers as well as revenue surplus.
'There is a clear lack of uniformity in regulation, …every state has different policies. Many private schools are located in Gurgaon or UP because the fee regulation in these places is not as strict. The regulations and fee hike issues have remained more complicated and severe in Delhi because of the different nature of regulations,' said Kavitha A Sharma, Vice Chairperson, Managing Board, Springdales School.
School fee regulation in other states
Ranging from a Consumer Price Index (CPI) based adjustment in states like Uttar Pradesh and Haryana to stern annual fee hike caps in states like Punjab to similar measures in Maharashtra, where an increase beyond the limit requires added sanctions from parent bodies, the regulations in place have attempted to keep profiteering at bay.
Similar factors to be considered in Delhi are in place in other states ruled by the Bharatiya Janata Party (BJP). For instance, as per norms under Section 9 of the Educational Institutions (Regulation of Fee) Act, 2011, in Maharashtra, a school's location, infrastructure available to students for qualitative education, educational standard, expenditure on administration, and maintenance are considered.
As for the staff salaries, reasonable yearly salary increments, salary components for qualified teaching and non-teaching staff are considered, as well as expenditure incurred on the students over the total income of the school and the reasonable surplus for qualitative development of the students.
The Punjab government also takes into account 'the future plans for expansion and betterment of institutions, subject, however, to restrictions of non-profiteering and non-charging of capitation fee'
Infrastructure and facilities available or to be made available, investment made, and salaries paid to the teachers and staff are also included among the factors to be taken into consideration for fixing or increasing school fees in Punjab, as listed under Section 6 of the Punjab Regulation of Fee of Unaided Educational Institutions Act.
In Haryana, the school management needs to submit details of the minimum facilities being provided and the mandatory fee components to be charged for the ensuing academic year on or before February 1.
On the fixation of fees, the Uttar Pradesh Government permits an annual fee revision for each grade equivalent to average per capita increase of the monthly salary of teaching staff of previous year, but the fee increase cannot be more than the yearly percentage increase in CPI added to 5 per cent of fee realised from student.
Fee hike regulations in different states:
* In Uttar Pradesh, the Self-Financed Independent Schools (Fee Regulation) Act, 2018, caps annual hikes at 9.9% — a fixed 5% plus a Consumer Price Index (CPI)-based adjustment
* Haryana amended its Education Rules in 2003 to tie fee hikes to the national CPI, allowing a maximum increase of 5% above the index
* Chandigarh follows the Punjab Regulation of Fee of Unaided Educational Institutions Act, under which schools cannot hike fees by more than 8% annually without district committee approval
* In Maharashtra, the Educational Institutions (Regulation of Fee) Act, 2011, allows schools to increase fees by up to 15% once every two years, but any hike beyond that requires approval from 76% of parents or a PTA executive committee.