OBC Reservation: Jaitley increases creamy layer ceiling to Rs 8 lakh per year from existing Rs 6 lakh

The Union cabinet today increased the 'creamy layer' ceiling for the Other Backward Classes It has been raised to Rs 8 lakh per annum from the existing Rs 6 lakh for central government jobs This ceiling disqualifies members of the backward community from availing Mandal reservations in employment and education

The Union cabinet today increased the 'creamy layer' ceiling for the Other Backward Classes (OBC) category to Rs 8 lakh per annum from the existing Rs 6 lakh for central government jobs, Finance Minister Arun Jaitley said.

Briefing reporters on the decisions taken by the Union cabinet, he said those in the OBC category earning up to Rs 8 lakh per annum would now get the reservation benefits.

Responding to a question, Jaitley said a proposal to extend the decision to public sector undertakings was under "active consideration" of the government.

This ceiling disqualifies members of the backward community from availing Mandal reservations in employment and education. The proposed hike when compared to the previous reservations from  Rs 1 lakh fixed in 1993 to Rs 2.5 lakh in 2004, Rs 4.5 lakh in 2008 and Rs 6 lakh in 2013 is quite average.