Achieving Real Filipino Middle Class Living

The National Average Monthly Salary in the Philippines: To What Extent Can It Support a True Middle-Class Lifestyle?

The national average monthly salary in the Philippines is Php 18,423 (2023), which should serve as a guideline for determining and limiting basic living expenses. Below is a proposed outline of how this may be structured:

2023 National Average Monthly Salary:
Php 18423

Monthly Budget

Housing Php 4605.75 (25%)
Food/ Groceries Php 2753.45 (15%)
Transportation Php 1842.30 (10%)
Education Php 1842.30 (10%)
Utilities & Clothing Php 921.15 (5%)
Recreation/Leisure Php 921.15 (5%)
Church giving/Charities Php 1842.30 (10%)
Health, Savings, & Investment Php 3684.60 (20%)

Total: Php 18423

1. Basic Housing (25%) Php 4605.75
– According to financial experts, a head of household should allocate 25-30% of their income for basic housing expenses. Based on the national average monthly salary of Php 18,423, this allocation translates to a maximum of Php 4,605.75 for housing costs. Therefore, the cost of basic housing in the Philippines should not exceed Php 4,605.75 per month.

Basic housing should include the capability to afford either the purchase or rental of at least a small house and lot, or a studio condominium with a designated parking space and a modest area suitable for gardening.

In Manila, the lower middle class, according to Philippine standards, often finds it challenging to secure more than a single room for rent, which does not reflect a true middle-class standard of living. The national average income is approximately PHP 18,423, based on 2023 data. My salary is only PHP 24,000, which limits my ability to afford anything beyond a single room due to the necessity of covering other basic expenses. Having been raised in an upper-class family with affluent grandparents, I have a clear understanding of what constitutes a genuine middle-class lifestyle. Furthermore, data from 2023 indicates that the Philippines is home to approximately 3.7 million squatters or informal settlers, highlighting the pressing issue of inadequate housing in the country.

One aspect of housing or condominium projects in the Philippines that I find particularly unfavorable is the requirement to make payments during the first five years without actually utilizing the property. This policy effectively doubles housing expenses, as individuals are responsible for both rent for their current living space and monthly amortization payments for the new property. This poses an additional financial burden on Filipino workers.

2. Basic Food/Groceries (15%) Php 2,753.45

According to finance experts, it is recommended that 10-15% of one’s budget be allocated for food and groceries. Based on the national average monthly salary, which amounts to Php Php 18423, the 15% allocation would be approximately Php Php 2,753.45. The question arises: is this amount adequate to support a family? Can it ensure a healthy and balanced diet?

The high cost of living in the Philippines maybe manipulated by business owners. Philippine Star shared,
“The user went on to directly compare prices between Singapore’s FairPrice supermarket and the local SM Supermarket: 700 grams of red onion cost SGD1.25 (P51.79 or US$0.91) in Singapore, while in the Philippines it could cost P168 (US$3.36), 500 grams of carrots in Singapore cost SGD 0.95 (P39.36 or US$0.69), while locally it would set you back P62.5 (US$1.25)…
The prices in the Philippines are more expensive, but the base salary is incredibly low compared to Singapore.”

3. Transportation Php 1842.30 (10%)
According to financial experts, it is recommended that 10-15% of income be allocated for transportation expenses. Based on the national average monthly salary of Php 18,423.00, a 10% allocation amounts on transportation shall be Php 1,842.30. Is this amount sufficient to purchase and maintain a basic vehicle?

4. Education Php 1842.30 (10%)
According to finance experts, it is recommended that 10% of one’s income be allocated for educational expenses. Based on the national average monthly salary, this amounts to approximately Php 1,842.30. However, is this sum sufficient to secure a college education? Fortunately, the enactment of the Free College Tuition Law by President Rodrigo Duterte (Rody Duterte) in 2017 has significantly alleviated the financial burden on students.Vice President Sara Duterte lifted admin tasks so that teachers can focus on teaching their students.

5. Utilities & Clothing Php 921.15 (5%)
According to financial experts, it is recommended that 5-10% of one’s income be allocated for utilities and clothing. Based on the national average monthly salary, which amounts to approximately Php 921.15 (5%), one must consider whether this is sufficient to cover expenses for clothing, mobile phones, and prepaid phone credits.

My original Filipino brand t-shirts range in price from Php 500 to Php 1,000. I spend around Php 500 on mobile phone credits each month.

6. Recreation/Leisure Php 921.15 (5%)
According to Finance expert, 5-10% must be allocated for recreation. The 5% of National average monthly salary is Php 921.15.Is this sufficient for a vacation or delicious dining with family?

7.Church giving/Charities Php 1842.30 (10%)

According to renowned Catholic lay preacher Bo Sanchez, it is essential to allocate 10% of one’s income to church donations each month.

There is a profound blessing associated with giving to the church and charitable organizations. According to Malachi 3:10:

“Bring the whole tithe into the storehouse, that there may be food in my house. Test me in this,” says the Lord Almighty, “and see if I will not throw open the floodgates of heaven and pour out so much blessing that there will not be room enough to store it.”

8. Health, Savings, & Investment Php 3684.60 (20%)

Are you familiar with the biblical figure Joseph? In the Book of Genesis, Joseph advised Pharaoh to save one-fifth (20%) of Egypt’s harvest during the seven years of abundance. This strategic planning ensured that the nation would have sufficient provisions to endure the subsequent famine.

In a similar vein, renowned Catholic lay preacher Bo Sanchez advocates for allocating 20% of one’s monthly income towards savings and investments. This principle underscores the importance of financial foresight and preparation for future challenges.

The Philippines is categorized as an improving lower middle-class economy under Ferdinand Marcos Jr, primarily based on its Gross Domestic Product (GDP). However, this metric often reflects a situation where the benefits of economic growth are disproportionately enjoyed by the wealthy. I contend that GDP alone does not adequately represent the health of an economy. Economic authorities should also consider the average national annual salary of an ordinary employee to determine whether individuals can sustain a basic middle-class standard of living.

The current National average monthly salary or income of the majority of the Filipinos is Php 18423, a socio economic status of lower middle income based from National Economic and Development Authority. I had written about this on my unedited and unfinished book on Filipino Leadership.
Link:
https://peterbreboneria.com/utak-henyo-1-0-personal-leadership-unedited-version/

Poverty in the Philippines is not merely the result of individual poor choices, but rather a reflection of the country’s systemic structure. It is challenging to live in a nation that fails to provide opportunities for a decent life, where accessing even basic healthy food, a basict home, or a simple vehicle becomes a struggle. What can one truly afford with an average annual salary of around Php 300,000 in a call center? In contrast, an average American or Asian Singaporean employee, earning at least Php 2- 3 million annually, can easily purchase a basic home, a simple car, and healthy food.

Recognizing the lack of realistic pathways to a comfortable life, the key to uplifting the Filipino community lies in fostering honorable, excellent, and servant leadership rooted in Christian or Catholic values. We should strive for honor and higher education; while we may not be wealthy, we can be highly educated and trustworthy, holding on to the hope of achieving progress and development in the future.

I understand the presence of millions of squatters and informal settlers in our country. Observing the actions of large institutions and corporations, it seems that rather than becoming more generous as they grow, they often become greedier and punitive, ultimately leading to their downfall, much like the Tower of Babel(Genesis 11: 1-9). Human nature struggles to manage excessive wealth and power; it requires checks, balances, and accountability to lead an ethical life.

If Singapore (with GDP of USD 501,428 at #30) with can provide a first-world standard of living in Asia, the Philippines(with GDP of USD 437,146M at #33) is also capable of achieving this with the implementation of humane systems and sound economic policies.

Therefore, the government should implement new policies aimed at regulating the price or cost of living and wealth of the affluent in the Philippines, thus, providing realistic opportunities for every Filipino. The cost of living or prices of basic expenses in the Philippines must be aligned to the average National monthly salary or income of the majority of Filipino workers in order to sustain an authentic middle-class living.

References
https://www.philstar.com/…/26/2343276/your-salary-enough

https://newsinfo.inquirer.net/…/phs-p15200-average…

https://www.philstar.com/…/its-more-expensive-philippines

https://thediplomat.com/…/the-philippine-economy-glass…/

https://www.philstar.com/headlines/2023/04/03/2256382/dhsud-government-housing-program-contribute-economic-growth

https://www.philstar.com/headlines/2017/08/04/1725170/duterte-signs-law-free-college-tuition

https://www.philstar.com/headlines/2024/01/27/2328957/deped-removes-admin-tasks-teachers-ensure-more-classroom-time

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