Average Annual Income Of Filipinos Lower At ₱307-K

The average income of Filipino families from January to December 2021 was estimated at PHP 307.19 thousand, lower by -2.0 percent than the PHP 313.35 thousand average family income in the same period of 2018, according to the Philippine Statistics Authority.

Photo Insert: On average, the Filipino families spent PJP 228.80 thousand in 2021, a decrease of -4.1 percent compared to the PHP 238.64 thousand average family expenditure in January to December 2018.

On average, the Filipino families spent PJP 228.80 thousand in 2021, a decrease of -4.1 percent compared to the PHP 238.64 thousand average family expenditure in January to December 2018, the PSA also said.

At constant 2018 prices, which is obtained by adjusting the estimates with the 2018 inflation rate, the average annual family income in 2021 was valued at PHP 282.08 thousand.

In the same manner, the average annual family expenditure during the year was valued at PhP 210.10 thousand at constant 2018 prices.

Among regions, the National Capital Region (NCR) retained its position as the region with the highest average annual family income in 2021 at PhP 417.85 thousand. Four of the country’s 17 regions posted higher average annual family income compared to the national average of PHP 307.19 thousand.

These were the following: NCR (PHP 417.85 thousand), Region IV-A (PHP 361.03 thousand), Cordillera Administrative Region (CAR) (PHP 350.43 thousand), and Region III (PHP 328.54 thousand). On the contrary, Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) registered the lowest average annual family income of PHP 184.94 thousand.

Among provinces and Highly Urbanized Cities (HUCs), Makati City registered the highest average annual family income of PHP 579.57 thousand in 2021.

On the other hand, the lowest average annual family income in 2021 was noted in Sulu at PhP 159.30 thousand. In terms of the growth in the average annual family income from 2018 to 2021, Lanao del Sur posted the highest growth rate of 42.9 percent, followed by Camarines Norte (27.6%), Apayao (22.7%), Batanes (22.2%), and Eastern Samar (21.9%).

Comparing the average annual family income in 2018 and 2021, the top five provinces and HUCs that posted the highest negative growth rate were, Mandaluyong City (-28.5%), Cebu City (-20.4%), Las Piñas City (-19.5%), Pateros (-17.7%), and Bohol (-15.7%).

In terms of the average annual family expenditure, the top five provinces with the highest growth rate in average annual family expenditure from 2018 to 2021 were Lanao del Sur (63.6%), Batanes (29.6%), Kalinga (21.8%), Misamis Occidental (19.0%), and Zamboanga del Sur excluding Zamboanga City (18.3%).

Income disparity contracts in 2021

The total annual family income of the upper 10 percent income group was 7.02 times as much as that of the bottom 10 percent income group. On the other hand, the total annual family income of the upper 20 percent income group was 4.74 times as much as the total annual family income of the bottom 20 percent income group. (Table 2)

In 2021, income inequality in the country as measured by the Gini coefficient was reduced to 0.4119 in 2021 from 0.4267 in 2018. (Table 5 and Figure 3)

This was driven by the growth in the average annual family income of the first to fifth income deciles and reduction in the average annual family income of the sixth to tenth income deciles. (Table 2)

Among the regions, BARMM had the lowest income disparity with a Gini coefficient of 0.2764, while Region VIII registered the highest income inequality with a Gini coefficient of 0.4531. (Table 5 and Figure 3)

Nine regions registered a Gini coefficient higher than the national figure. These were Region VIII (0.4531), Caraga (0.4474), Region VII (0.4344), Region VI (0.4283), Region II (0.4201), MIMAROPA (0.4193), CAR (0.4191), Region XII (0.4181), and Region X (0.4128). (Table 5 and Figure 3)

Among the provinces and HUCs, the top five areas with the most equitable distribution of income were Lanao del Sur (0.2036), Sulu (0.2253), Navotas City (0.2575), Tawi-Tawi (0.2682), and Maguindanao (0.2695). (Table 5)

On the other hand, the top five provinces and HUCs with the highest level of income inequality were observed in Tacloban City (0.4893), Negros Oriental (0.4723), Zamboanga Sibugay (0.4670), Butuan City (0.4611), and Iloilo, excluding Iloilo City (0.4606). (Table 5)

Income inequality can also be measured using the Palma ratio, which is calculated as the ratio of the total family income of the upper 10 percent income decile group to the lower 40 percent income decile group.

In 2021, it was observed that the income inequality measured by the Palma ratio was reduced to 1.26 from 1.39 in 2018, implying lower income inequality in 2021. (Table 2)

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