Guide on 7 Income Groups as per PIDS
INCOME GROUPS – Here are seven (7) socioeconomic status in the Philippines according to the Philippine Institute Development Studies and how much they earn monthly.
One of the common truths among many countries is that it is composed of individuals who belong to different socioeconomic status. Undeniably, the most popular categories are “poor” and “rich”. There are also those who consider themselves “middle class”. However, what is really the clear distinction among these income categories?
Not many people surely know that there are actually several categories when you brand yourself as “middle class”. Based on an article on PhilSTAR Life, the Philippine Institute for Development Studies, more popularly called PIDS has actually named seven (7) income groups in the Philippines.
The Philippine Institute Development Studies (PIDS) considered the Family Income and Expenditure Surveys (FIES) conducted by the Philippine Statistics Authority in 2021 in determining the seven (7) income groups in the country.
To determine to which do you really belong based on numbers, here is a guide:
Poor
According to PIDS, those who belong to poor category are those individuals who have per capita income less than the official poverty threshold. They earn less than Php 12,030 per month.
Low but not poor
Individuals who belong to low but not poor category are those with per capita income between the poverty line and twice the poverty line. They have a monthly income ranging from Php 12,030 to Php 24,060 per month.
Lower Middle
The Philippine Institute Development Studies told PhilSTAR Life that the individuals who belong to the Lower Middle income group are those who have per capita income that is twice the poverty line and four times the poverty line.
They are the people earn between Php 24,060 up to Php 48,120 in a month.
Middle Middle
Also one of the income groups cited by PIDS is the middle level of the Middle Class which is composed of individuals with per capita income between four (4) times the poverty line and seven (7) times the poverty line.
Individuals who belong to the middle category of the Middle Class are those with a monthly income ranging between Php 48,120 to Php 84,210.
Upper Middle
Individuals who belong to the Upper Middle income group are those with per capita income between seven (7) times the poverty line and 12 times the poverty line.
Do you want to know if you belong to the Upper Middle category? That is if your monthly earning is between Php 84,210 to Php 144,360.
Upper Middle but not rich
Who are the Upper Middle but not rich? They are the individuals with per capital income between 12 times the poverty line and 20 times the poverty line. They earn a monthly income between Php 144,360 to Php 240,060.
Rich
Last but surely not the least in terms of numbers among the income groups is the Rich. Based on the article, this category is where individuals with per capita income that is at least 20 times the poverty line belong.
To belong to the category of rich individuals, you must be earning at least Php 240,600.
To which do you belong?