<p>Bengaluru: Karnataka is examining hiking the annual income limit for the ‘creamy layer’ from the existing Rs 8 lakh, the government told the Legislative Assembly, in what would be a big policy move benefiting large numbers of other backward classes (OBCs). </p>.<p>In a written reply, Backward Classes Welfare minister Shivaraj Tangadagi said that the government is examining hiking the annual income limit to <br>Rs 12.75 lakh. This is in line with the Union government’s decision to exempt citizens earning a salary of up to Rs 12.75 lakh from paying income tax. </p>.<p>At present, OBC families with an annual income exceeding Rs 8 lakh are considered as ‘creamy layer’ and ineligible to avail reservation benefits. </p>.<p>Tangadagi’s written reply came after the Supreme Court declared that income alone could not determine whether or not a candidate fell under the ‘creamy layer’ of OBCs. </p>.<p>Currently, the ‘creamy layer’ policy does not apply to SC/STs and Category-1 of the OBC. It applies to OBC categories 2A, 2B, 3A and 3B. In Karnataka, OBCs have a 32% reservation in education and jobs. The ‘creamy layer’ policy for OBCs was introduced in 2002 with an annual income limit of Rs 2 lakh. The limit was then increased to Rs 3.5 lakh in 2012, Rs 4.5 lakh in 2013 and Rs 6 lakh in 2015. The next hike came in September 2018 when the annual income limit was fixed at Rs 8 lakh.</p>.<p>Raising the income limit will make lakhs of middle-class OBC families eligible for reservations. The current income limit is seen as outdated given the increased cost of living due to inflationary trends and changing salary structures. </p>.<p>After the implementation of the 7th Pay Commission, salaries of government employees increased, pushing many into the ‘creamy layer’ and risking loss of reservation benefits for their children.</p>.<p>In 2024, the Karnataka State Commission for Backward Classes, headed by former MP Jayaprakash Hegde, recommended the introduction of the ‘creamy layer’ to Category-1 of the OBC.</p>.<p>“Excluding category-1 created an imbalance. Some groups within Category-1 have made significant progress socially and educationally — thanks to reservation,” Hedge told <span class="italic">DH</span> then. </p>.<p>Also, the Supreme Court, in August 2024, suggested that the ‘creamy layer’ among Scheduled Castes be excluded from reservation benefits. Chief Minister Siddaramaiah has described this stance of the top court as <br />“controversial”.</p>
<p>Bengaluru: Karnataka is examining hiking the annual income limit for the ‘creamy layer’ from the existing Rs 8 lakh, the government told the Legislative Assembly, in what would be a big policy move benefiting large numbers of other backward classes (OBCs). </p>.<p>In a written reply, Backward Classes Welfare minister Shivaraj Tangadagi said that the government is examining hiking the annual income limit to <br>Rs 12.75 lakh. This is in line with the Union government’s decision to exempt citizens earning a salary of up to Rs 12.75 lakh from paying income tax. </p>.<p>At present, OBC families with an annual income exceeding Rs 8 lakh are considered as ‘creamy layer’ and ineligible to avail reservation benefits. </p>.<p>Tangadagi’s written reply came after the Supreme Court declared that income alone could not determine whether or not a candidate fell under the ‘creamy layer’ of OBCs. </p>.<p>Currently, the ‘creamy layer’ policy does not apply to SC/STs and Category-1 of the OBC. It applies to OBC categories 2A, 2B, 3A and 3B. In Karnataka, OBCs have a 32% reservation in education and jobs. The ‘creamy layer’ policy for OBCs was introduced in 2002 with an annual income limit of Rs 2 lakh. The limit was then increased to Rs 3.5 lakh in 2012, Rs 4.5 lakh in 2013 and Rs 6 lakh in 2015. The next hike came in September 2018 when the annual income limit was fixed at Rs 8 lakh.</p>.<p>Raising the income limit will make lakhs of middle-class OBC families eligible for reservations. The current income limit is seen as outdated given the increased cost of living due to inflationary trends and changing salary structures. </p>.<p>After the implementation of the 7th Pay Commission, salaries of government employees increased, pushing many into the ‘creamy layer’ and risking loss of reservation benefits for their children.</p>.<p>In 2024, the Karnataka State Commission for Backward Classes, headed by former MP Jayaprakash Hegde, recommended the introduction of the ‘creamy layer’ to Category-1 of the OBC.</p>.<p>“Excluding category-1 created an imbalance. Some groups within Category-1 have made significant progress socially and educationally — thanks to reservation,” Hedge told <span class="italic">DH</span> then. </p>.<p>Also, the Supreme Court, in August 2024, suggested that the ‘creamy layer’ among Scheduled Castes be excluded from reservation benefits. Chief Minister Siddaramaiah has described this stance of the top court as <br />“controversial”.</p>
