In recent news, during the ongoing Monsoon Session of Parliament, the definition of the ‘Creamy Layer’ was brought into discussion by some Members of Parliament (MPs). The Justice Rohini committee is also contemplating the sub-categorization of Other Backward Classes (OBC) quota and if a specific community or group of communities are benefiting disproportionately from the OBC quota.
History of OBC Quota Reservation
In August 1990, acting on the recommendation of the Second Backward Classes Commission, commonly known as Mandal Commission, the government declared a 27% reservation for Socially and Educationally Backward Classes (SEBCs) in vacancies in civil posts and services to be filled on direct recruitment. However, this notification was challenged and later in November 1992, the Supreme Court upheld the 27% reservation for OBCs, but with a caveat – the exclusion of the ‘creamy layer’.
Understanding the Concept of Creamy Layer
The ‘Creamy Layer’ concept sets a benchmark which determines the applicability of OBC reservation benefits. Of the total 27% quota reserved for OBCs in government jobs and higher educational institutions, those who fall within the “creamy layer” cannot avail the benefits of this quota. The creamy layer categorization is based on income and parents’ position, excluding the income limit, its current definition remains unchanged.
Criteria for Classification under Creamy Layer
For individuals not working in the government sector, the existing threshold is an annual income of Rs 8 lakh. It’s expected to be revised every three years with the last revision made in 2017, which is over three years ago now. For government employees’ children, the classification is based on their parents’ rank rather than their income.
For instance, an individual is considered to fall within the creamy layer if either parent holds a constitutional post; if either parent has been directly recruited in Group-A; or if both parents are in Group-B services. Moreover, children whose parents enter Group-A through a promotion before the age of 40 are also considered part of the creamy layer. The children of a Colonel or higher-ranked officers in the Army, Navy, and Air Force also fall into this category.
Latest Proposal by the Government
According to a draft Cabinet note, the creamy layer will be determined on all income, excluding agriculture but including salary calculated for income tax. The government is mulling over a consensus on Rs 12 lakh per annum, while a Parliament Committee has recommended raising it up to Rs 15 lakh per year. The committee has also proposed excluding salary and agricultural revenue from the annual income ceiling calculation for the creamy layer category of OBCs.