The household saving rate is defined as gross household saving divided by gross disposable income, with the latter being adjusted for the change in pension entitlement of households.
Gross saving is the part of the gross disposable income which is not spent as final consumption expenditure. Therefore, the saving rate increases when gross disposable income grows at a higher rate than final consumption expenditure.
Saving rates can be measured on either a gross or net basis. Net saving rates are measured after deducting consumption of fixed capital (depreciation).