Parliamentary Panel Seeks Hike In OBC Creamy Layer Limit, Says Rs 8 Lakh Cap Too Low

The Parliamentary Committee on the Welfare of Other Backward Classes has once again called for revising the creamy layer income limit, describing the change as the “need of the hour” in a report tabled in Parliament on Friday (8 August), The New Indian Express reported.

The panel had first made this recommendation in April.

In its action taken report, it repeated the demand, but the Ministry of Social Justice and Empowerment responded that “at present there is no proposal under consideration” to revise the OBC creamy layer cap.

The committee said the current Rs 8 lakh annual ceiling is “insufficient” due to rising basic incomes among lower-income groups and rising trend of inflation index.

It stressed that expanding the coverage would help raise the socio-economic condition of more OBCs to a satisfactory level.

The last revision took place in 2017, when the cap was increased from Rs 6.5 lakh to Rs 8 lakh per year.

Under Department of Personnel and Training rules, the limit should be reviewed every three years or earlier, according to a 1993 order.

The April report had observed that the current threshold benefits only a small section of OBCs, leaving out many who need state support to improve their social and educational status.

The panel also referred to the government’s statement that the pre-matric scholarship scheme will be reviewed for the 2026-27 to 2030-31 cycle, with a revision of the parental income limit under discussion.

It has recommended starting these scholarships from Class 5 and raising the parental income cap from Rs 2.5 lakh to Rs 5 lakh per year.

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