Will the income limit of OBC creamy layer increase again after 2017? Know why the discussion started

It was to be revised every three years

The increase in the 'income limit' for the 27% OBC quota has been pending for seven years. This is why it has been increased twice. It must be revised every three years to adjust for inflation. The 'creamy layer', which was last increased from Rs 6 lakh to Rs 8 lakh in 2017, is a group of backward people who are considered rich among the OBCs. They are therefore ineligible for job and education quotas.

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Demand to revise income limit

G Karunanidhi, general secretary of the All India OBC Employees Federation, said that during the seven years, the central government has revised the salary structure of its employees. Their dearness allowance (DA) has been increased from 24% to 46% by July 2023. In such a situation, it is unfair to ignore these indices for the income limit for reservation. He said that the new central government has started its work. We demand immediate revision of the income limit for the creamy layer to Rs 15 lakh.

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It is recommended to make it Rs 12 lakh.

In 2020, when the income limit was to be increased, the Union Ministry of Social Justice had submitted a Cabinet proposal. It recommended raising it from Rs 8 lakh to Rs 12 lakh, but added a separate point to redefine the 'income criteria' for the 'creamy layer'. According to the post-Mandal 1993 office memorandum, 'income' does not include 'salary' and 'agricultural income', but the government proposed that 'salary' should also be included in the calculation of 'income' in future.

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What is the government saying?

The proposal was opposed by the National Commission for Backward Classes and senior OBC leaders in the BJP. They argued that including 'salary' in the calculation of 'creamy layer' would make it easier for OBCs to be considered better off. A shocked Modi government had to shelve the proposal. The impasse lasted for three years and the date for the revision was rescheduled for September 2023. Meanwhile, the Minister of Social Justice told the Lok Sabha on February 7, 2023 that there was no proposal for revision as 'the existing income limit is considered adequate'. This led to outrage among OBCs.

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It is easy to fall out of reservation eligibility

Now, with the two hikes pending, social justice activists like Karunanidhi, who has sent several letters to the government, complain that it has become too easy for OBCs to be excluded from reservation eligibility. This is because the Rs 8 lakh limit is too low in 2024, seven years after it was set.