Centre Rejects Proposal to Raise OBC Creamy Layer Limit Beyond ₹8 Lakh

The Central Government has decided not to raise the annual income ceiling for the Other Backward Classes (OBC) creamy layer, retaining the limit at ₹8 lakh per annum. The decision comes amid repeated demands from social groups and political representatives seeking an upward revision to reflect inflation and rising living standards.

Sources from the Ministry of Social Justice and Empowerment stated that any revision in the limit would require a fresh socio-economic review and cabinet approval. The creamy layer concept, introduced to ensure that reservation benefits reach the truly disadvantaged within OBCs, currently excludes families earning more than ₹8 lakh annually from availing of quota benefits in central government jobs and educational institutions.

OBC organizations and state governments, particularly in Bihar and Odisha, have urged the Centre to raise the limit to ₹12 lakh, citing the widening income disparity and rising cost of living. Experts argue that the existing threshold, last revised in 2017, no longer reflects current economic realities.

However, government officials maintain that any revision must balance the spirit of social justice with fiscal responsibility. The announcement has sparked fresh political debate, with opposition parties accusing the Centre of neglecting OBC welfare.