Savings Behavior of Government Salaried People in Unakoti District of Tripura

Abstract

As per rules, the Savings practice of Government salaried people is mandatory up to a stipulated amount of monthly salary. According to GPF, EPF and NPS Rules, a predetermined amount is deducted by the employer at source for the future wellbeing of the concerned employee and invest to GPF, EPF, NPS, etc. In addition to these mandatory savings, employees can save their money to other savings instruments according to their capability and other conditions. As most of the government employees in Unakoti district of Tripura are working with small designations and salaries, they are not able to save more in addition to mandatory savings. Fixed Pay Employee (FPE), Contract Base Worker (CBW), Per Time Worker (PTW), Monthly Pay Worker (MPW), Daily Rate Worker (DRW) are the working conditions where employees get less amount of salary in comparison to regular employees. Under these conditions, their savings rate is also low in comparison to other employees. Other Sources of income, spouse job, dependency ratio, age, literacy level, educational qualification and availability of savings instruments nearby employees are an important aspect for better understanding of savings improvement in the District. The present study entitled “Savings behavior of Government Salaried People in Unakoti District of Tripura” is an empirical study based on primary data and secondary data. The study reveals that the savings rate of salaried people in Unakoti District of Tripura is growing slowly. Financial literacy, reduction of dependency ratio by employment generation programs, Massive awareness program and availability of savings instruments in the rural areas may make a vigorous savings environment in Unakoti District of Tripura.