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"It has now been decided to raise the income limit from Rs 6 lakh to Rs 8 lakh per annum for determining the creamy layer among the Other Backward Classes," said the order issued by Department of Personnel and Training (DoPT).
"The provisions of this office memorandum have effect from September 1, 2017," it added.
Union Finance Minister Arun Jaitley had, after a cabinet meeting on August 23, said that OBC families earning up to Rs 8 lakh per annum will not be considered in the 'creamy layer'. Earlier, this ceiling was Rs 6 lakh per annum.
"The cabinet was apprised that the creamy layer criterion limit has been raised to Rs 8 lakh annually for the central government," he said.
Jaitley had said the National Commission for Backward Classes had given its recommendation in 2011 that there should be sub-categorisaion and the Parliamentary Standing Committee had also given such a recommendation.
The Supreme Court, in its November 1992 order, had observed that there is nc Constitutional or legal bar to a state categorising backward classes as backward or more backward.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)