OBC Creamy Layer Bar raised to Rs 8 Lakh P.A.

The government has raised the income limit defining ‘creamy layer’ for OBC reservation by Rs two lakh per annum. The Union cabinet has approved setting up of a panel for sub-categorisation within the other backward classes for even distribution of reservation benefits. According to Union Finance Minister Arun Jaitley the government has hiked 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. Those in the OBC category earning upto Rs 8 lakh annually will now be included in reservation benefits. Jaitley also announced the decision of the cabinet to set up a commission to work out sub-categorisation within other backward classes for a “more equitable distribution of reservation benefits amongst the OBCs”.