·The Hindu·15 marks·250–350 words

"Excluding salary and agricultural income from the creamy-layer test protects the logic of social backwardness but risks capture by the affluent among OBCs." Critically examine.

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In this answer
  1. How the exclusion protects the logic of social backwardness
  2. How it risks capture by the affluent
  3. Way forward

The creamy layer removes OBC families who have moved beyond social backwardness. The 1993 Office Memorandum tests this mainly by the parents' post and status. Its separate income/wealth test leaves out salary and farm income, and the Supreme Court upheld this on 11 March 2026 [1][2]. The design is sound in principle but has gaps in practice.

How the exclusion protects the logic of social backwardness

  • Status over pay: Backwardness under Articles 15(4) and 16(4) is social, not only economic. A Group A post shows social advancement better than one year's salary does [2].
  • No backdoor tightening: The Court held that incomes cannot simply be added together. It also held that a 2004 clarification could not add conditions missing from the 1993 OM [2].
  • Expert backing: The Standing Committee on Welfare of OBCs (2019) recommended counting only income from sources other than salary and agriculture [3].
  • Avoids double screening: Salaried parents are already tested through their rank. Adding salary would penalise lower-grade staff whose pay rises with years of service, not with status.

How it risks capture by the affluent

  • Pay-blind gaps: A government employee earning ₹12 lakh or more stays non-creamy layer if not in Class I by age 40. A PSU employee earning above ₹6 lakh was treated as creamy layer [4].
  • Rich farmers: Agricultural income is not counted in the test [4]. Prosperous landowning families can therefore keep the benefit.
  • Private-sector opacity: Equivalence with government posts was fixed only for PSUs, banks and insurers, in 2017 [5]. The B.P. Sharma Committee report on equivalence was still under consideration in 2020 [6]. So private-sector job titles can hide real wealth.
  • Ceiling inertia: Other income is capped at ₹8 lakh [7], and DoPT told Parliament that no revision proposal was pending [4].

Way forward

  • Publish a table matching private and autonomous-body posts to government grades [3].
  • Make any tightening, such as a high-salary cap, by formally amending the OM with a clear start date.
  • Review the ceiling regularly, in line with the Consumer Price Index.

Overall, leaving salary and farm income out keeps the test true to social backwardness, but only if post equivalence is complete and enforced. With a transparent status test and regular reviews of the ceiling, the benefit can reach the most deprived OBCs. That would serve the substantive equality the Constitution promises under Articles 14 and 16.

Sources

  1. 1"OBC creamy layer ruling will not alter past allocations: SC", The Hindu, 7 Nov 2026the 11 March 2026 ruling upheld the 1993 OM's exclusion of salary and agricultural income
  2. 2Supreme Court of India, judgment dated 11 March 2026 (2026 INSC 230)status-based test; incomes cannot simply be added; the 2004 clarification could not add conditions; Articles 14 and 16
  3. 3PRS: Rationalisation of Creamy Layer in Employment for OBCs (Standing Committee Report No. 21, 2019)count only income other than salary and agriculture; identify equivalent posts
  4. 4Committee on Welfare of Other Backward Classes (2024-25), Report₹12 lakh government vs ₹6 lakh PSU anomaly; agricultural income not counted; no revision pending in DoPT
  5. 5PIB: Cabinet approves equivalence of posts in PSUs, Banks, Insurance Institutions with Government posts (2017)PSU equivalence fixed in 2017
  6. 6PIB: Expert Committee for revisiting Creamy Layer for OBCsB.P. Sharma Committee report under consideration
  7. 7PIB: Income Limit for OBC/EWS (2022)₹8 lakh parental income limit

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