Are you part of the Philippine middle-class?

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Are you part of the Philippine middle-class?
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If you're five in a family with a household income of between around P25,000 to P145,00 per month, you're part of the Philippines' middle-class, suggests a new study by the government think tank PIDS

If you're five in a family with a household income of between around P25,000 to P145,00 per month, you're part of the Philippines' middle-class, suggests a new study by the government think tank PIDSA new study by the government think tank Philippine Institute for Development Studies points out the importance of the middle-class, saying its expansion has “significant implications” on a country’s “sustainable development and socio-political stability.

In “Wealth Creation for Expanding the Middle Class in the Philippines,” PIDS Senior Fellows Jose Ramon Albert, Roehlano Briones, and John Paolo Rivera define middle-class as those with per capita incomes two to 15 times the official poverty line. This translates to a monthly family income range of P24,060 to P144,360 for a middle-class household at 2021 prices. The authors said this range “corresponds to the incomes of various middle-class occupations” in the country.

In the same period, the share of low-income persons declined by 11 points from 70.8% to 59.3%. This means majority of Philippine population was still poor in 2021. Other regions with a relatively large share of middle-class households were Central Visayas, which has Cebu City as its main economic hub; Western Visayas with Iloilo as its economic center; and Ilocos Region in northern Philippines. While the average family size in the Philippines is 4.2, middle-class households had an average of 3.6 members.

Single-parent households are also more prevalent among low-income families, and upper-income households have a “higher presence of seniors.” Around four out of five employed middle-class individuals had permanent jobs while only 18.9% had casual employment. Those in the middle-class and upper-income households also have longer hours at work, given that many in the low-income households are underemployed.

Image from “Wealth Creation for Expanding the Middle Class in the Philippines,” by PIDS Senior Fellows Jose Ramon Albert, Roehlano Briones, and John Paolo Rivera Of the 1.35 million families with an OFW, nearly 75% of them or 3 in every 4 were part of the middle-class.

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