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OBC Reservation Reform: Government Proposes Same Income Ceiling for All Sectors

The central government is considering a proposal to standardize the income limit for the “creamy layer” under the Other Backward Classes (OBC) reservation.

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Edited By: Nishchay
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National News: The central government is considering a proposal to standardize the income limit for the “creamy layer” under the Other Backward Classes (OBC) reservation. The aim is to ensure that all individuals qualifying for OBC benefits are treated consistently across central and state governments, public sector undertakings (PSUs), universities, and private institutions, thereby eliminating any discrepancies in eligibility.

Uniformity to Ensure Fairness

Reports indicate that the government is reviewing a plan to apply the same income threshold for all types of institutions. This step is intended to prevent discrimination and provide clarity on who qualifies for reservation benefits under the OBC category.

What Is the Creamy Layer?

The concept of the “creamy layer” was established by the Supreme Court in 1992 through the Indira Sawhney vs. Union of India case. Its purpose is to exclude the more affluent and capable members of OBC communities from reservation benefits so that opportunities are reserved for those who are genuinely in need. In 2017, the government set the annual income ceiling for the creamy layer at ₹8 lakh, which remains the current benchmark.

Who Falls Under the Creamy Layer?

Individuals classified under the creamy layer typically include senior government officers, high-ranking officials in PSUs, top executives, armed forces personnel, and wealthy businesspeople, provided their income exceeds the specified limit. To review the proposal, ministries such as Social Justice and Empowerment, Education, Personnel and Training, Labor and Employment, Legal Affairs, PSUs, NITI Aayog, and the National Commission for Backward Classes (NCBC) are in discussion.

Why a Uniform Limit Is Needed

While the 017 income ceiling is applied in many central PSUs, it varies across state government jobs, universities, and other institutions. Non-creamy layer OBCs enjoy a 27% reservation in central government jobs and educational institutions, but inconsistencies in income thresholds create inequities. Those classified as part of the creamy layer do not receive reservation benefits, and differences in limits often result in unfair treatment.

The report also notes that university teaching positions, including assistant professors, associate professors, and full professors, frequently receive salaries comparable to or higher than Group-A government posts. It is suggested that these positions should also fall under the creamy layer. If implemented, children of individuals in these categories would no longer be eligible for OBC reservation, ensuring that benefits are reserved for those in genuine need.

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