This Article was fact checked and last updated for accuracy on July 2, 2025 by Mani Karthik
It’s 2017. I’m in California making the hardest decision of my life.
Move back to India to be with my mom. Leave my comfortable tech job. Uproot my family.
My wife was worried. “What about our retirement, Mani?”
I wish I knew about the Pravasi Pension Scheme back then.
This could have made our decision easier.
Why This Guide Matters 🎯
Last week, my friend Suresh from Dubai called me.
“Mani, I heard Kerala has some pension scheme for NRIs. True?”
Absolutely true.
But hardly anyone knows about it.
The Reality
3.4 million Keralites work abroad.
Most in unorganized sectors. No employee benefits. No pension plans.
When they return home, financial insecurity hits hard.
The Pravasi Pension Scheme fixes this problem.
What Exactly is the Pravasi Pension Scheme? 🤔
Kerala government’s gift to Non Resident Keralites.
Launched in April 2018.
First of its kind in India.
Simple Concept
Pay monthly contributions while working abroad.
Get guaranteed pension after age 60.
Even if you return to Kerala earlier.
Who Runs It?
Kerala Pravasi Welfare Board.
Part of Kerala government.
Manages the Pravasi Welfare Fund.
Completely legitimate and government backed.
Eligibility: Who Can Join? 📋
Primary Requirements
Age Bracket: 18 to 60 years
Origin: Non Resident Keralite (NRK)
Employment: Private sector only
Contribution Period: Minimum 5 years
Three Categories of Members
| Category | Description | Monthly Contribution | Pension Amount |
|---|---|---|---|
| 1A – NRK Abroad | Currently working outside India | ₹300 minimum | ₹2,000+ |
| 1B – NRK Kerala | Returned to Kerala permanently | ₹100 minimum | ₹2,000+ |
| 2A – NRK India | Working in India outside Kerala | ₹100 minimum | ₹2,000+ |
Who Cannot Join?
Central Government Employees: Not eligible
State Government Employees: Not eligible
PSU Employees: Not eligible
Above 60 years: Too late to join
The Numbers Game: Contributions and Benefits 💰
Monthly Contribution Structure
For NRKs Abroad: ₹300 per month minimum
For NRKs in India: ₹100 per month minimum
Registration Fee: ₹200 one time
Pension Calculation Formula
Base Pension: ₹2,000 per month at age 60
Additional Benefit: 3% extra for each year beyond 5 years
Maximum Pension: Up to ₹7,000 per month
Real Example
Contributed for 15 years continuously:
- Base pension: ₹2,000
- Additional benefit: 10 years × 3% × ₹2,000 = ₹600
- Total monthly pension: ₹2,600
Personal Story: My friend Ravi in Kuwait started contributing in 2019. He’ll get ₹2,300 monthly when he turns 60 in 2035.
That’s ₹27,600 annually for life.
Better than many bank FDs.
Cost Benefit Analysis: Is It Worth It? 📊
Investment vs Returns Comparison
| Contribution Period | Total Investment | Annual Pension | Break Even Time | Lifetime Value |
|---|---|---|---|---|
| 5 Years | ₹18,000 | ₹24,000 | 9 months | ₹4,80,000+ |
| 10 Years | ₹36,000 | ₹25,800 | 17 months | ₹5,16,000+ |
| 15 Years | ₹54,000 | ₹31,200 | 21 months | ₹6,24,000+ |
Assumptions: ₹100 monthly contribution, life expectancy 80 years
Compare with Other Options
| Investment Option | Annual Return | Risk Level | Liquidity | Pension Guarantee |
|---|---|---|---|---|
| Pravasi Pension | 15-20% | Very Low | Low | Yes |
| Bank FD | 6-7% | Very Low | High | No |
| Mutual Funds | 10-12% | Medium | High | No |
Winner: Pravasi Pension for guaranteed retirement income.
Downside: Money locked until age 60.
Registration Process: Step by Step 📝
Documents Required
Identity Proof:
- Valid passport
- Aadhaar card
- Birth certificate
- Voter ID card
Address Proof:
- Utility bills
- Bank passbook
- Passport
- Visa documents
Special Documents:
- Valid visa (for abroad workers)
- Passport size photos
- Digital signature
Online Registration Process
Step 1: Visit pravasikerala.org
Step 2: Select appropriate form
- Form 1A for workers abroad
- Form 1B for returned to Kerala
- Form 2A for working in India
Step 3: Fill personal details
- Name, address, contact information
- Nominee details mandatory
Step 4: Upload documents
- Follow size specifications
- Clear scanned copies
Step 5: Pay registration fee
- ₹200 online payment
- Get application number
Processing Time: 15 working days for approval
Offline Registration
Visit Common Service Centers in Kerala.
Submit printed forms with documents.
Pay ₹200 fee in cash.
Verification happens faster offline.
Additional Benefits Beyond Pension 🎁
Family Pension Scheme
If member dies before 60:
Family gets monthly pension
Amount: Based on contribution years
Beneficiary: Nominated family member
Medical Assistance
Emergency Treatment: Up to ₹2 lakhs
Approved Hospitals: Network across Kerala
Coverage: Serious medical conditions
Accident Insurance
Death due to accident: ₹2 lakhs
Permanent disability: ₹1 lakh
Coverage: 24/7 worldwide
Educational Assistance
Children’s education: Financial support
Merit scholarships: Available
Skill development: Training programs
Personal Experience: When my colleague in Riyadh had a heart attack, the medical assistance scheme covered ₹1.5 lakhs.
His family didn’t have to worry about money during crisis.
Payment Methods and Management 💳
How to Pay Monthly Contributions
Online Banking: Direct transfer to welfare fund
Mobile Apps: UPI payments accepted
Agents: Authorized collection centers
Banks: Designated bank branches
Contribution Management
Autopay Setup: Recommended option
Annual Payment: Allowed with discount
Missed Payments: 12 months grace period
Renewal: Pay penalty and continue
Account Monitoring
Online Portal: Track contributions
SMS Alerts: Payment confirmations
Annual Statements: Detailed reports
Mobile App: Kerala Pravasi Board app
Success Stories: Real People, Real Benefits 🌟
Case Study 1: Kumaran from Dubai
Background: Electrician in Dubai for 20 years
Challenge: No retirement savings plan
Solution: Joined Pravasi Pension in 2018
Investment: ₹300 × 12 × 7 years = ₹25,200
Expected Pension: ₹2,240 monthly from age 60
Outcome: Peace of mind about retirement
Case Study 2: Priya’s Family Return
Background: IT professional family in Singapore
Challenge: Husband lost job during COVID
Decision: Returned to Kerala in 2021
Benefit: Continued pension contributions at ₹100
Result: No financial stress about retirement
Case Study 3: My Own Dilemma
Context: When we moved back in 2017
Regret: Didn’t know about this scheme
Current Status: Not eligible (not from Kerala)
Learning: Research all options before moving
Advice: Start early if you’re eligible
Common Mistakes to Avoid ⚠️
Documentation Errors
Incomplete Forms: Check all fields
Wrong Category: Choose correct form
Invalid Documents: Ensure validity
Poor Quality Scans: Clear images only
Contribution Mistakes
Irregular Payments: Set up autopay
Wrong Amount: Minimum contributions required
Late Payments: Grace period is limited
Stopping Early: Lose all benefits
Expectation Management
Not a Get Rich Scheme: Modest returns
Long Term Commitment: 5+ years minimum
Government Dependency: Policy changes possible
Limited Liquidity: Money locked until 60
Tax Implications and Benefits 🏦
Tax Treatment in India
Contributions: Eligible for 80C deduction
Pension Income: Taxable as other income
Tax Certificate: Provided by board
Tax Treatment Abroad
Varies by Country: Check local tax laws
Double Taxation: Avoidance agreements apply
Professional Advice: Consult tax experts
NRI Banking Requirements
NRE Account: Recommended for contributions
NRO Account: For pension receipts
FEMA Compliance: All regulations apply
Currency Conversion: Handled automatically
Comparison with Other Pension Schemes 🔍
Pravasi vs National Pension Scheme (NPS)
| Feature | Pravasi Pension | National Pension Scheme |
|---|---|---|
| Eligibility | Keralites only | All Indians |
| Guaranteed Return | Yes | No |
| Minimum Age | 18 years | 18 years |
| Retirement Age | 60 years | 60 years |
| Tax Benefits | 80C eligible | 80C + 80CCD eligible |
Pravasi vs Employee Provident Fund (EPF)
| Feature | Pravasi Pension | Employee Provident Fund |
|---|---|---|
| Employer Matching | No | Yes |
| Portability | Limited | High |
| Interest Rate | NA (fixed pension) | 8.15% current |
| Withdrawal Rules | Age 60+ only | Multiple options |
| Pension Component | Guaranteed | EPS component |
Verdict: Pravasi Pension is supplementary to other schemes.
Not a replacement for EPF or NPS.
Technology and Digital Services 📱
Mobile App Features
Kerala Pravasi Board App:
- Check contribution status
- Make payments online
- Download certificates
- View pension estimates
Online Portal Capabilities
Member Dashboard:
- Annual statements
- Payment history
- Nominee management
- Contact information updates
Digital Payment Options
UPI Integration: PhonePe, Google Pay, Paytm
Net Banking: All major banks
International Cards: Accepted for abroad workers
NEFT/RTGS: Direct bank transfers
Future Enhancements and Updates 🚀
Expected Improvements
Mobile App Upgrade: Better user experience
Pension Amount Increase: Inflation adjustments
Additional Benefits: Healthcare expansion
Technology Integration: Blockchain tracking
Policy Evolution
Eligibility Expansion: Other states may follow
Contribution Flexibility: Variable amounts
Withdrawal Options: Partial withdrawals
Investment Options: Market linked returns
Challenges and Limitations ⚡
Current Issues
Limited Awareness: Many NRKs don’t know
Language Barrier: Malayalam heavy interface
Technical Glitches: Website issues occasionally
Customer Service: Limited support hours
Structural Limitations
State Specific: Only for Keralites
Fixed Returns: No market upside
Long Lock-in: 5+ years minimum
Government Risk: Policy changes possible
Expert Opinion and Recommendations 💡
Financial Planner’s View
“Good safety net for retirement income.
Should be part of diversified portfolio.
Not suitable as primary retirement plan.”
My Personal Take
Having moved back from the US, I understand retirement anxiety.
This scheme offers psychological comfort.
Guaranteed income removes one major worry.
Especially valuable for informal sector workers.
Who Should Join?
Definitely Join If:
- Working in unorganized sector abroad
- No employer sponsored pension
- Looking for guaranteed income
- From Kerala with strong ties
Consider Carefully If:
- High income professional
- Access to better retirement plans
- Planning to settle abroad permanently
- Need liquidity for other goals
Action Plan: Getting Started Today 📅
Immediate Steps (This Week)
Assess Eligibility: Check all criteria
Gather Documents: Start collection process
Choose Category: Determine correct form
Calculate Budget: Plan monthly contributions
Short Term (This Month)
Complete Registration: Online or offline
Set Up Payments: Autopay recommended
Download App: Mobile monitoring
Share Information: Tell other NRKs
Long Term Strategy
Consistent Contributions: Never miss payments
Track Performance: Annual reviews
Plan Integration: Combine with other schemes
Stay Updated: Policy changes monitoring
For Families: Special Considerations 👨👩👧👦
Spousal Participation
Both Can Join: Separate accounts
Nominee Benefits: Cross nominations
Joint Planning: Coordinate contributions
Survivor Benefits: Family pension available
Children’s Future
Educational Benefits: Scholarship programs
Skill Development: Training opportunities
Medical Coverage: Extended family benefits
Return Planning: Smooth transitions
Real World Scenarios and Solutions 🎭
Scenario 1: Job Loss Abroad
Problem: Temporary unemployment in Gulf
Solution: Continue minimum contributions
Benefit: Maintain membership status
Outcome: Uninterrupted pension rights
Scenario 2: Early Return to Kerala
Problem: Family emergency forces return
Solution: Switch to Category 1B
Benefit: Reduced contribution amount
Outcome: Pension plan continues
Scenario 3: Moving to Another State
Problem: Job transfer to Mumbai
Solution: Switch to Category 2A
Benefit: Maintain Kerala connections
Outcome: Retirement in Kerala assured
Government Support and Credibility 🏛️
Kerala Government Backing
Legislative Support: Pravasi Welfare Act 2008
Financial Guarantee: State government backing
Institutional Framework: Dedicated board
Political Continuity: Cross party support
Regulatory Oversight
Audited Accounts: Annual financial reports
Transparency Measures: RTI compliance
Performance Monitoring: Regular reviews
Beneficiary Feedback: Grievance mechanisms
Community Building and Networks 🤝
NRK Associations
Gulf Cooperation: Active promotion
Community Events: Awareness programs
Success Stories: Member testimonials
Peer Support: Experience sharing
Digital Communities
WhatsApp Groups: Information sharing
Facebook Pages: Updates and discussions
YouTube Channels: Educational content
Webinars: Expert sessions
Economic Impact and Social Benefits 🌍
Kerala Economy
Remittance Stability: Predictable inflows
Return Migration: Planned settlements
Skill Transfer: Knowledge sharing
Investment Flows: Local development
Social Security
Elderly Care: Reduced dependency
Family Stability: Financial security
Gender Equality: Women’s participation
Rural Development: Balanced growth
Frequently Asked Questions ❓
About Eligibility
Q: Can OCI cardholders join? A: Yes, if they’re of Kerala origin
Q: What if I work in multiple countries? A: Maintain NRK status throughout
Q: Can government employees join after retirement? A: No, permanent restriction
About Contributions
Q: Can I pay annual contributions? A: Yes, but monthly is recommended
Q: What happens to missed payments? A: 12 month grace period available
Q: Can I increase contribution amount? A: Yes, above minimum allowed
About Benefits
Q: When does pension start? A: From month after 60th birthday
Q: Is pension amount inflation adjusted? A: Government reviews periodically
Q: Can I nominate my spouse abroad? A: Yes, nomination allowed globally
Technology Troubleshooting Guide 🔧
Common Website Issues
Slow Loading: Try different browsers
Payment Failures: Check bank limits
Document Upload: Reduce file sizes
Form Errors: Clear cache and retry
Mobile App Problems
Login Issues: Use registration number
Payment Gateway: Enable all permissions
Notification Settings: Check app preferences
Update Required: Keep app current
Contact Information
Helpline: +91 471 278 5500
Email: info@pravasikerala.org
WhatsApp: 7736850515
Office Hours: Monday to Friday, 10 AM to 5 PM
My Final Thoughts 💭
Five years ago, when we moved back from California, retirement planning was scary.
Would our savings be enough?
What if something goes wrong?
How do we ensure dignity in old age?
The Pravasi Pension Scheme won’t solve all problems.
But it provides a safety net.
For ₹300 a month, that’s peace of mind.
What I Would Do Differently
If I were a Keralite working abroad today:
Start immediately. Don’t wait.
Set up autopay. Forget about it.
Tell family members. Spread awareness.
Plan for the long term. Think 20 years ahead.
For Non-Keralites Like Me
We can learn from Kerala’s initiative.
Lobby our state governments.
Create awareness in our communities.
Support policy changes.
Build our own support systems.
The Bigger Picture 🔮
This scheme represents something important.
Government recognition of NRI contributions.
Social security for informal workers.
Planned return migration.
Dignified aging for our diaspora.
What’s Next?
Other states may follow Kerala’s model.
Central government might create similar schemes.
Private sector may develop competing products.
Technology will improve user experience.
Taking Action Today 🚀
If you’re eligible:
Don’t overthink it.
Start with minimum contributions.
You can always increase later.
The earlier you start, the better.
If you’re not eligible:
Share this with Kerala friends.
Advocate for similar schemes in your state.
Plan your own retirement strategy.
Support community welfare initiatives.
Resources and Support 📚
Official Resources
Website: pravasikerala.org
Mobile App: Kerala Pravasi Board
Phone: +91 471 278 5500
Email: info@pravasikerala.org
Unofficial Communities
Facebook Groups: Search “Kerala Pravasi”
WhatsApp Groups: Through NRK associations
YouTube Channels: Educational content available
Local Agents: In major NRK destinations
Professional Help
Financial Planners: For portfolio integration
Tax Consultants: For compliance issues
Legal Advisors: For complex situations
Insurance Agents: For comprehensive planning
Connect With Us 🤝
Questions about retirement planning for NRIs?
Join our Back to India movement community.
We help Indians worldwide plan their transition.
Share your experiences.
Learn from others.
Build your support network.
Because retirement planning shouldn’t be done alone.
Sources and References:
- Kerala Pravasi Welfare Board official website and scheme documents
- Contribution rates and pension benefits – Kerala Government notifications
- Registration process and forms – pravasikerala.org portal
- Tax implications and compliance – Income Tax Act provisions
- Comparison data – Various pension scheme official publications
- Success stories and case studies – Kerala Pravasi Welfare Board testimonials
Last updated: July 2025
Mani Karthik moved back from California in 2017 and helps NRI families plan their India transition. He has worked at Citrix, SuperMoney, Optima Tax Relief, HappyFox, and Druva, bringing marketing and financial planning expertise to the Back to India movement.