AVERAGE annual family income in the Philippines rose 16.5 percent in 2025 to P411,350, but family spending grew at a faster pace, pointing to continued pressure on household budgets, data from the Philippine Statistics Authority showed.
The increase in income was faster than the 15 percent growth recorded between 2021 and 2023. Average annual family income stood at P353,230 in 2023 and P307,190 in 2021.
In contrast, average annual family expenditure jumped 24.7 percent to P321,850 in 2025 from P258,050 in 2023. This was significantly faster than the 12.8 percent increase recorded between 2021 and 2023, when average annual spending was P228,800.
The figures indicate that while household earnings increased, a larger share of income was being absorbed by spending.
Income growth was recorded across all income groups in 2025. Families in the lowest income decile earned an average P170,580 annually, while those in the highest decile earned P1.04 million.
Higher-income groups, starting with the seventh decile, posted faster income growth in 2025 than in the previous two-year period.
Wages and salaries remained the main source of family income, accounting for 54.6 percent of the total. Entrepreneurial activities contributed 15.5 percent, followed by imputed rent at 8.7 percent, cash receipts from abroad at 8.5 percent and cash receipts from domestic sources at 5.3 percent.
Pensions were the largest contributor among other income sources, accounting for 3.4 percent of total family income, followed by gifts at 1.8 percent.
On the spending side, food and non-alcoholic beverages accounted for the biggest share at 33.3 percent of total family expenditure.
Housing, water, electricity, gas and other fuels accounted for 21.6 percent, followed by restaurants and accommodation services at seven percent, transport at 6.9 percent, personal care and miscellaneous goods and services at 4.2 percent and health at 3.5 percent.
Expenditure increased across all income deciles. Except for the lowest-income group, all deciles posted faster spending growth in 2025 than in 2023, with the strongest increases recorded among higher-income households.
This reversed the pattern seen from 2021 to 2023, when spending grew faster among lower-income families than higher-income groups. / KOC