The central government has indicated that there are no current plans to revise the income limit for the "creamy layer" among the Other Backward Classes (OBC). This was communicated to the Lok Sabha, with the Ministry of Social Justice and Empowerment stating that the existing annual income ceiling of ₹8 lakh is considered sufficient for determining the non-creamy layer status.
The "creamy layer" concept distinguishes between economically advanced and less privileged members within the OBC category. Those falling within the "creamy layer" are not eligible for reservation benefits. The income limit is meant to be reviewed every three years, or even sooner if required, according to the Department of Personnel and Training (DoPT) norms. The last revision occurred in 2017 when the limit was raised from ₹6.5 lakh to ₹8 lakh per annum.
A Parliamentary Committee on the Welfare of Other Backward Classes has recently reiterated its recommendation to revise the creamy layer income ceiling, emphasizing that it is the "need of the hour". The committee argues that the current threshold of ₹8 lakh is insufficient, considering the increase in basic income of individuals, even in lower-income groups, and the increasing trend of inflation. They believe that a large segment of the OBC population is excluded from reservation benefits and government welfare schemes due to this. The committee has recommended that a revision would help in raising their socio-economic condition to a satisfactory level.
In its action taken report, the parliamentary committee repeated the demand, but the Ministry of Social Justice and Empowerment responded that “at present there is no proposal under consideration” to revise the OBC creamy layer cap.
The parliamentary committee, in its April report, had recommended to the Centre that pre-matric scholarships should begin from Class 5 onwards and that the current eligibility limit of parental income be raised from ₹2.5 lakh per annum to ₹5 lakh per annum to cover more OBC students. Concerns have also been raised regarding the decreased number of scholarship beneficiaries and the underutilization of funds, which is seen as hindering OBC welfare. Data indicates a drop in pre-matric scholarship beneficiaries from 58.6 lakh in 2021-22 to 20.29 lakh in 2023-24.
The government is reportedly considering a proposal to apply the OBC 'creamy layer' income exclusion yardstick to attain "equivalence" among various Central and state government organizations, public sector enterprises, universities, and private sector employees. This proposal aims to bring uniformity in determining the creamy layer status across different sectors. It is to address situations where qualified OBC candidates are denied service allocation because their parents' salaries were counted without considering post equivalence.
The 'creamy layer' specifies groups among OBCs such as persons occupying constitutional posts; Group-A/Class-I officers of All India Services, Central services and state services; Group-B/Class-II services of Centre and state; employees of PSUs; officers of armed forces; professionals and those from trade and industry; property owners; and an income/wealth test.
