Government likely to hike income criteria for determining creamy layer

The central government is considering a proposal for revision of the income criteria for determining the creamy layer among other backward classes (OBCs).

In his reply to a question in the Lok Sabha on Tuesday, Minister of State (MOS) for Social Justice and Empowerment Krishan Pal Gurjar said the proposal was made after due consultation with the National Commission for the Backward Classes (NCBC).

In September of last year, the government had informed Parliament that an expert committee headed by BP Sharma to examine the issues related to creamy layer equivalence among the socially and educationally backward classes (SEBCs) had submitted its report which was under consideration.

OBCs are entitled to a 27 percent quota in higher educational institutions and public sector employment. The rider for the quota is that the gross annual income of the parents of an applicant should not exceed Rs 8 lakh. Any person from the OBC community whose parents have an annual income of Rs 8 lakh and above is classified as a "creamy layer" and is not eligible for the quota.

In response to another question in the Lower House of Parliament, the MoS for Social Justice and Empowerment Rattan Lal Kataria said, "A committee was constituted to make an in-depth analysis of the reasons for non-filling up of reserved vacancies/less employability of Scheduled Castes (SCs), Scheduled Tribes (STs), Other Backward Classes (OBCs) and Persons with Disabilities (PwDs) in the government sector and suggest remedial measures."

This is in line with the statement by Social Justice and Empowerment Minister Thawar Chand Gehlot in December of last year. Gehlot had said that the Centre will increase the income ceiling limit for the creamy layer of OBCs very soon.

The annual income limit for OBC creamy layer was hiked from Rs 4.5 lakh to Rs 6 lakh under UPA rule in 2013. In September of 2017, the BJP-led NDA government hiked the limit to Rs 8 lakh.

Now, the Cabinet is expected to take a call on both the issues together - income computation and creamy layer announcement.

The proposal, according to sources, is to increase the creamy layer criteria from Rs 8 lakh to Rs 12 lakh.