The income limit defining 'creamy layer' for OBC reservation has been raised by Rs 2 lakh per annum even as the Union cabinet approved setting
up of a panel for sub-categorization within the other backward classes for even distribution of reservation benefits. The ministry of social justice and empowerment had proposed that OBC families which earn more than Rs 8 lakh per year should be classified as 'creamy layer' -- the ceiling which bars members of the other backward classes from availing reservations in employment.