What are the norms to fix the fee of Private Schools in India?
Charging and incrementing the fee including tuition fee in accordance with the paying capacity of the parents in a respective State or Union Territory, or city in compliance with the rules and regulations of CBSE and the State Fee Regulation Act is one of the very tough decisions the Society/Trust/Company must take on. It was explicitly stated in Chapter 7 of CBSE Affiliation Bye-Laws, notified on 18thof October, 2018 that an entity such as Society/Trust/Company could set up a private school to impart the most advanced quality of education for the welfare of the society, not for the objective of making a monetary profit or commercialisation of the education. A private school is a learning institution which is established by a Society/Trust/Company registered under section 8 of the Companies Act 2013.
The fixation of the fees leviable by a school is based on many important considerations, and they should be proposed in accordance with the CBSE By-Laws and a respective State Fee Regulation Act. The location of a school, the infrastructure of the school’s building, the facilities provided and as mentioned in the prospectus or school’s website, the educational standard of the school, the expenditure on administration and maintenance, and the salaries of the qualified teachers and non-teaching staff etc are extremely important factors in fixing up the fees. These mentioned parameters are critical to charge the fee from the parents.
Increment and determination of fee are decided by the Parent-Teachers Association, and it is mandatory to constitute such an association within a few days from the commencement of each academic year. The management of the school will regulate fee structure or will propose the details of the fee hike in accordance with the respective State Fee Regulation Act in front of the Parent-Teacher Association known as Executive Committee. This Executive Committee has the authority to revise the amount of the fee hike while giving the approval over this.
For instance, in Maharashtra, a school can only hike up to 15% once every two years, not every year. In some unforeseen circumstances, a school even seek hike above 15% or before the lapse of two years unless it is approved by 76% of the parents or the Parent-Teachers Association.
In the state of Rajasthan, the management of a school can propose the fee or the fee hike if they (management) can convince the Parent-Teachers Association also known as School Level Fee Committee. The advancement of the hardware and software facilities, the strength of the students, the facility of swimming pool, horse riding, shooting, archery and performing art, etc. are the parameters to fix or hike the fee. As per the regulation of Rajasthan, the fee proposal meeting must consist of at least two parent members out of four members to fix or hike the fee. Else, the business transaction during this meeting without adhering to this criterion will be null and void. The management can seek up to 15% fee hike before the commencement of an academic session.
Charging exorbitant fees with the aim of commercialisation of the education and profiteering without providing the excellent result and quality education may be the violation of the ordinance promulgated by the appropriate government. Non-compliance with this bye-law and Fee Regulation Act will lead to the written warning from CBSE, restricting the number of sections in the school, the suspension of affiliation for a definite period, withdrawal of affiliation, the hefty fine up to 5 Lakhs, and the derecognition of the school, etc. Even a State government can rescind the No Objection Certificate (NOC) and levy hefty penalty to pay. For the reader information, NOC is necessary clearance to run an institution.
India, being one of the most diverse countries in the world, has a lot of diversity even demographically, ethnically and in regulations in different States, and Union Territories. Remember, deciding the fees structure in Uttar Pradesh and proposing the fees structure in Tamil Nadu is the daunting nature by the ordinance of the incumbent government. The tediousness of the procedure of declaring the fees with the norms is replete with many overt and covert challenges. Quality of result and education, parents’ and teachers’ satisfaction level, retention of the teachers, index of the students and teachers’ happiness, infrastructure, sports activities, and the justified fees against the facilities and qualities are the accurate predictor of running a successful school.
Here comes the most critical role of the pioneer in the field of school education consulting, Erocon. We address the intricacies for the fixation of the fee and other glaring and hidden obstructions during the planning stage of a school.
Expert Eroconian consultants address the burning and vital questions of “How to start a new school or how to establish a school or the commencement of a new school,” from the day of inception of a school.
Through the extensive survey and assessment, we unpack the suggestion to our valued partners for taking up the difficult decision of fees structure as per the guidelines of the respective government fee regulation act and CBSE norms on the day of the planning a school. Many schools have consulted us in this regard, and they all have been successfully achieving the milestones session after session. We are the proud meditator in the successful voyage of our valued partners who are transforming many lives at a prodigious pace.
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