Highlights of the Preliminary Results of the 2021 Family Income and Expenditure Survey (FIES) Visit 1

Reference Number: 

2022-143

Release Date: 

Friday, April 22, 2022

Average family income in the first half of 2021 is estimated at Php 149.98 thousand

The average income of Filipino families from January to June 2021 was estimated at  PhP 149.98 thousand. This is higher by 0.2 percent from the PhP 149.71 thousand in the same period of 2018. (Tables 1 and 2, and Figure 1)

During the period January to June 2021, the average family expenditure was reported at PhP 113.67 thousand, or a decline of -5.9 percent compared with the PhP 120.75 thousand in the same period of 2018. (Tables 1 and 3, and Figure 1)

Average Family Income Grew among Lower Income Decile Groups

Average income of families in the first income decile to the eight income decile grew in the first half of 2021 compared to that of the same period in 2018. Looking at the average income of the families in the lowest income decile groups in the first half of 2021, the average income of those in the first and second income decile both grew by 5.5 percent. On the other hand, average income of the families in the ninth and tenth income decile declined by -1.5 percent and -5.5 percent, respectively. (Table 2 and Figure 2)

 

Average family expenditure in first semester of 2021 went down across all income decile groups

Across all income decile groups in the first half of 2021, the average family expenditure decreased compared to the levels in the first half of 2018.

In the first half of 2021, the average expenditure of families in the first income decile group was recorded at PhP 47.19 thousand. This decreased by -14.0 percent from PhP 54.88 thousand in the same period in 2018. On the other hand, average expenditure of families in the tenth decile group decreased by -7.2 percent. (Table 3 and Figure 3)

Income disparity in the first semester of 2021

With the increase in the average family income among lower income families and decrease in the average family income among higher income families in the first half of 2021, the gap between the upper income decile groups and the bottom income decile groups contracted. (Table 2)

The total income of the upper 10 percent income group was 9.0 times that of the bottom 10 percent income group. This is narrower compared to the first half of 2018, where the total income of families in the tenth income decile was 10.1 times of the total income in the first income decile group. (Table 2)

In terms of the income disparity of the families in the upper 20 percent and bottom 20 percent income groups in the first half of 2021, the upper 20 percent income group earned 5.6 times that of the total income of the bottom 20 percent income group. In the first half of 2018, upper 20 percent income group earned 6.2 times the income of the bottom 20 percent income group in the Philippines. (Table 2)

In the first half of 2021, lower income disparity was observed implying a more equitable distribution of income. The Gini coefficient was recorded at 0.4414 in the first half of 2021 from 0.4596 in the same period of 2018. The Gini coefficient is used to measure the income inequality among families.  It ranges from 0 to 1, with 0 indicating perfect income equality among families, while a value of 1 indicates absolute income inequality. (Table 1 and Figure 4)

 

Wages and Salaries remained to be the primary source of total family income

Wages and salaries remained to be the primary source of family income. In the first half of 2021, 51.4 percent of total family income was from wages and salaries. In 2018, this was estimated at 49.5 percent.

Among the income sources, wages and salaries, entrepreneurial activities, cash receipts from abroad, imputed rent, and cash receipts from domestic source remained to be the highest contributor to total family income. (Table 4 and Figure 5)

 

Changes in spending pattern among Filipino families in the first half of 2021

The expenditure on food items remained to have the highest share on total expenditures in the first half of 2021.

The top five expenditure items with the highest share to total income were the following: (Table 5 and Figure 6)

a. Food expenditure (42.9%);
b. Housing, Water, Electricity, Gas, and other Fuels (25.1%);
c. Insurance and Miscellaneous Activities (7.3%);
d. Transport (5.7%); and
e. Health (3.3%).

Differences in spending pattern between low and high-income families

Expenditure on food remained to have the biggest share in the total expenditure of Filipino families. Families in the bottom 10 percent income group spent 59.8 percent of their total expenditure on food compared to the upper 10 percent income group that spent only 28.0 percent of their total expenditure on food items. (Table 5 and Figure 7)

The second biggest share in total expenditure of Filipino families was on housing, water, electricity, gas, and other fuels.  Families in the upper 10 percent income group spent more on house rental, water, electricity, gas, and other fuels at 27.9 percent share compared to 18.5 percent for families in the bottom 10 percent income group.

In the first half of 2021, those in the bottom 10 percent income decile and those in the upper 10 percent have common top four expenditure items, these are, food expenditure; housing, water, electricity, gas, and other fuels; insurance and miscellaneous services; and transport services. It is noteworthy that among the bottom 10 percent income group, expenditure share on clothing and footwear was the fifth highest while among the upper 10 percent income decile, expenditure share on health was the fifth highest.

 

 

 

 

DENNIS S. MAPA, Ph.D.
Undersecretary
National Statistician and Civil Registrar General

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