Revision of Income Criteria for “Creamy Layer”

As per Supreme Court’s judgment mentioned in, “Creamy Layer” is excluded from the reservation benefits available to OBCs. Detailed criteria defining the “Creamy Layer” are laid down in the Schedule to DOPT O.M. No. 36012/22/93-Estt. (SC) dated 08.09.1993, which lays down the following six categories to whom the rule of exclusion will apply:

  • Constitutional Posts
  • Service Category
  • Armed Forces including Para-Military Forces
  • Professional Class and those engaged in Trade and Industry
  • Property owner, and
  • Income/Wealth Tax payee

In the last category, income ceiling specified in the said O.M. dated 8.9.93 was Rs.1 lakh per annum. This was revised to Rs. 2.5 lakh per annum in 2004 which has further been again revised to Rs. 4.5 lakh per annum in October, 2008, and to Rs. 6.0 lakh per annum in May, 2013. The Government in August 2017 increased the “creamy layer” ceiling for the Other Backward Classes to Rs 8 lakh per annum from the existing Rs 6 lakh for Central government jobs.

OBC List to be Sub-Categorised

The Union Cabinet on August 23, 2017 approved the setting up of a commission to examine the issue of sub-categorisation of Other Backward Classes (OBC).