Creamy layer’ income cap among OBCs raised to Rs 8 lakh per annum, says Arun Jaitley

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 here. 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.

According to those in the know, it has been referred to a Group of Ministers for a second view before being sent to the Cabinet for government assent.
The ministry has proposed that OBC families which earn more than Rs 8 lakh per year should be classified as "creamy layer" — the ceiling which disqualifies members of the backward community from availing Mandal reservations in employment and education. The present salary bar stands at Rs 6 lakh annually.

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