Think tuition hikes are just a way for schools to make more money? Think again.

In Philippine private schools, tuition fee increases are not arbitrary—they’re carefully regulated.

A large portion of any approved hike - 70percent are allocated for increases in teachers and staff, salaries, professional development, retirement pay and other employee benefits. It assures a funding source or provisioning for inflationary pressure of the times. It is not a direct benefit to be taken in the form of raw cash but rather the fund source and a guarantee for its availability as allocated and determined by the universities.

In other words, your fees don’t just support the school—but rather they help maintain well being of the lives of people who make your education possible, ensuring quality teaching while promoting transparency and accountability.

Under the rules of the Commission on Higher Education (CHED), at least 70 percent of any approved increase must go to employees.

This ensures that faculty and staff benefit, rather than the institution pocketing the revenue.

The regulation also protects workers, encourages transparency, and clarifies the purpose of tuition adjustments.

CHED only approves tuition hikes after schools consult students, faculty, and other stakeholders.

The process is guided by the Higher Education Act of 1994 (Republic Act 7722) and CHED Memorandum Order No. 03, Series of 2012, also known as the Enhanced Policies, Guidelines, and Procedures on Tuition and Other School Fees.

Based on CHED’s rules, 70 percent of any intended increase must go to salaries, wages, allowances, and benefits for teaching and non-teaching personnel—excluding administrators who are principal stockholders of the school. This may include adjustments from existing Collective Bargaining Agreements (CBAs) and other government mandated increases in employee compensation not to forget retirement.

At least 20 percent of the increase must be used to improve or modernize school facilities—think buildings, libraries, labs, and gymnasiums—or support other operational needs.

The remaining 10 percent is allocated as profit for the university, as a way of motivating owners/stockholders to keep and maintain their investment in the university. We should not forget this stakeholder because this is where the university all started. We need to keep investors happy too.

Schools must document consultations and submit detailed applications to CHED, including letters of advice, Certificates of Intended Compliance (COIC), Certificates of Compliance (COC), and comparative tuition schedules.

CHED evaluates applications based on factors like regional inflation, the school’s finances, students’ capacity to pay, disaster impacts, and the institution’s quality and mission.

Only if all these criteria are met will CHED approve the increase.

Historically, tuition increases have varied across institutions and regions.

For instance, in Academic Year 2021–2022, CHED approved 56 private HEIs nationwide to increase tuition and other school fees. The hikes, averaging 4.74 percent per tuition unit and 10.61 percent for other fees, covered HEIs across 11 regions, including 14 in Metro Manila.

CHED also establishes a timeline for the application process.

In February 2025, HEIs were invited to orientation meetings to discuss application requirements, use of official CHED templates, and the schedule for submitting complete documentation.

These structured procedures aim to ensure that any tuition and other fee increases are fair, justified, and transparent to all stakeholders.

CHED specifies that 70 percent of any approved increase goes to employees, while the remaining 20 percent goes toward facilities, institutional development, or student assistance programs. The 10 percentage balance goes to the university. This is like doing a family budget making sure each member is not forgotten.

For example, if tuition rises by P1,000, P700 goes to employee compensation and P200 goes to improving facilities, and P100 goes to investors.

Schools must verify this allocation through sworn COIC and COC certificates, which are displayed publicly for transparency, CHED said.

Republic Act 6728 establishes a minimum salary scale for faculty in private colleges and universities.

This law is particularly relevant to tuition fee increases, as CHED mandates that at least 70 percent of any approved tuition hike be allocated to employee benefits, including salaries, benefits, and professional development.

Tuition fee adjustments help private HEIs meet or exceed these mandated minimums.

Based on CHED’s guidelines, tuition hikes are not meant to line the pockets of school owners.

Most of the increase goes to employee benefits, and CHED enforces strict oversight to ensure the 70:20:10 allocation is followed.

CHED’s guidelines are designed to protect all stakeholders in the education system.

For faculty and staff, they guarantee fair pay and benefits, ensuring that employees receive appropriate compensation.

For universities, the guidelines provide clear rules for implementing tuition increases, helping institutions apply changes consistently and legally.

For students and parents, they ensure that fees are directed toward supporting teachers and improving school facilities.

Finally, for CHED and lawmakers, the guidelines reinforce transparency, accountability, and adherence to legal compliance across the higher education sector.

By reserving the majority of tuition increases for employees, schools can fairly distribute rising educational costs, improve learning conditions, and maintain accountability.

Understanding these rules helps prevent misunderstandings and ensures that tuition hikes truly serve their intended purpose: supporting the people who make education possible.