Percentage Distribution of Socioeconomic Classes 2011

% Share in Number % Share in Total Average Annual

Class
of Families Income Income
AB 1% 9% PHP1,857,000
C 9% 26% PHP603,000
D 60% 56% PHP191,000
E 30% 9% PHP62,000
Total 100% 100% PHP206,000
Class A vs. Class B: What’s the distinction?
Identifying the extreme segments of the population is actually easier to do than defining
the rest of the segments. For example, we can surmise that residents of high-end, ultra-
exclusive subdivisions such as Forbes Park, Dasmarinas Village, Ayala Alabang, and
the like may be classified as Class A.

But what about multi-millionaires in the provinces with sprawling hectares of land and
with large mansions? They appear to be uber-rich but do they fall under Class A?

Can we also say that those living in expensive and posh subdivisions such as Valle
Verde, La Vista, and Ayala Hillside Estates are in Class A? The market prices of land in
those subdivisions may range from P30,000 to P80,000 per square meter, so if you are
to buy a 1,000-square meter house and lot inside these villages, you will have to shell
out between P30 million and P80 million on average.

If you can afford that, does that mean you are part of Class A? Or is that Class B? How
do we make a distinction between Class A and Class B?
Class E vs. Classes C and D
The other extreme segment of the population, Class E, is also easier to distinguish.
Typically Class Epeople are those with no homes that they can call their own. They
may reside in squatter areas (or, to use the more politically correct term, “informal
settlements”). They barely possess any property or asset and they usually live on a
hand-to-mouth basis, meaning, they are not assured if they will have something to eat
by the next meal time.
Meanwhile, the two other remaining income classes, C and D, are vaguely known. One
of them may be called the “middle class” and another, the “masa” segment but which
one exactly? It’s even possible that the “middle class” and the “masa segment” may be
just one and the same.
 Sponsored Links

If we look at the income pyramid identified in our previous article Social class structure:
Income distribution between rich vs. poor, we can see that the income structure in the
Philippines is Type 2, or a society “with a small elite at the top, more people in the
middle, and most at the bottom.”

If majority of the population are said to be “at the bottom,” that is, below the poverty line,
which class then does the “average Filipino” belong? Class C or D?

Rich vs. Poor vs. Middle class

We tried to do extensive research in order to answer the questions we posted above.

We were able to find relevant reports below that can help define the income classes.

The latest “Family Income and Expenditure Survey” (FIES) of the National Statistical
Coordination Board (NSCB) offers some, albeit not that exhaustive, information about
income classes in the country. However, instead of dividing the Philippine population
into Classes A, B, C, D or E, the NSCB simply grouped the country into three segments:
the high income, middle income, and low income groups.
High income segments are families or people earning an average of P200,000 a month
or P2.4 million a year. Thus, they may be described as the “rich” segment. They are
very few, numbering only 0.1% of total families in the Philippines.
The middle income class is said to earn an average of P36,934 per month while
the low incomesegment earns an average of P9,061 per month.

It is good to know that the FIES report has those details, unfortunately, it is still not
detailed enough. For example, if a family’s monthly income is around P80,000 — can
this be considered high income or middle income? What if the monthly income of a
household is P20,000 — is this middle or low income?

Simply speaking, we want to know: When can we say if a family or a person belongs to
the high income, middle income, or low income class? The FIES report does not provide
a concrete answer.