Family income in Region XII up by 35.1 percent
(posted 20 July 2011)

Final results of the 2009 Family Income and Expenditures Survey (FIES) released by the National Statistics Office (NSO) showed that, in 2009, the average annual income of families in the SOCCSKSARGEN Region was estimated at P154 thousand. This represents an increase of 35.1 percent over their incomes three years ago. In 2006, the average income of families in the region was P114 thousand.

Table 1. Average Income, Expenditure and Savings of Families by Region
2006 and 2009
(In thousand pesos; details may not add up to totals due to rounding)
Region
Income
Expenditure
Savings
2009
2006
2009
2006
2009
2006
Philippines
206
173
176
147
31
26

National Capital Region

356
311
309
258
47
53

Cordillera Administrative Region
219
192
174
151
44
42

I - Ilocos
186
142
152
124
35
19

II - Cagayan Valley
181
143
141
118
40
25

III - Central Luzon

221
198
189
170
32
27

IVA - CALABARZON

249
210
213
186
36
23

IVB - MIMAROPA

141
109
121
93
21
16

V - Bicol
152
125
137
110
15
15

VI - Western Visayas

159
130
143
116
16
14

VII - Central Visayas

184
144
152
124
32
21

VIII - Eastern Visayas

160
126
128
104
32
22

IX - Zamboanga Peninsula

144
125
116
99
28
27

X - Northern Mindanao
165
142
139
117
26
25

XI - Davao

166
135
142
115
24
19

XII - SOCCSKSARGEN

154
114
132
96
22
18

XIII - Caraga

149
118
125
100
23
18

ARMM
113
89
98

75
15
14
Source: 2009 FIES, National Statistics Office

On family expenditures, the same report showed that families in the region spent, on the average, about P132 thousand in 2009 - a significant increase of 37.5 percent over the P96 thousand average expenditure posted in 2006. Family savings consequently went up from P18 thousand in 2006 to P22 thousand in 2009.

Most families derive income from salaries/wages

By source of income, 45.1 percent of the families in SOCCSKSARGEN derived their incomes from salaries/wages while 36.7 percent sourced their income from entrepreneurial activities. Some 18.2 percent of the families sourced their income from other sources such as cash receipts, rentals, dividends, pensions/retirement benefits. goods and services received as gifts and others.

Table 2. Percent Distribution of Families by Income Class and by Main Source of Income, Region XII: 2009
Main Source of Income All Income Classes Income Class
Under 40,000 40,000 - 59,999 60,000 - 99,999 100,000 - 249,999 250,000 and over
Number of Families ('000) 801 50 120 240 287 105
Percent 100.0 100.0 100.0 100.0 100.0 100.0
Wages/Salaries 45.1 27.9 37.6 43.4 50.4 51.4
Entrepreneurial Activities 36.7 39.5 44.9 44.3 31.6 22.5
Other Sources of Income 18.2 32.6 17.5 12.4 17.9 26.2
Source: 2009 FIES, National Statistics Office

The report also revealed that a significant number of families (35.8%) in the region had incomes ranging from 100,000-249,999. Majority of the families in the higher income brackets mainly sourced their incomes from salaries and wages. About 51.4 percent of families in the 250,000 and above income bracket reported salaries/wages as their chief source of income. The same was also the case for 50.4 percent of families in the 100,000-249,999 income bracket.

Families in the lower income brackets, on the other hand, relied on entrepreneurial activities to finance their needs. About 39.5 percent of families earning less than 40,000 annually reported deriving their income from entrepreneurial activities. About 45.0 percent of families in the 40,000-59,999 and 60,000-99,999 income brackets were into entrepreneurial activities to eke out a living.

More than 50% of expenses of low-income families went to food

In terms of expenses, the biggest chunk of family expenditures (45.8%) went to food followed by house rentals (7.6%), transportation and communication (7.2%) and fuel, light and water (5.5%). Expenses for education and medical care only got 4.2 percent and 3.8 percent, respectively. 

Table 3. Distribution of Family Expenditures by Expenditure Item, Region XII: 2009
Expenditure
Item		 Income Class
All Classes Under 40,000 40,000- 59,999 60,000- 99,999 100,000- 249,999 250,000 and over
Total Expenditures
(in Billion Pesos)		 105.5 1.8 6.6 19.1 39.7 38.3
Percent 100.0 100.0 100.0 100.0 100.0 100.0
Food 45.8 64.9 63.1 59.5 49.3 31.5
Fuel, Light & Water 5.5 6.6 6.1 5.7 5.6 5.0
Transportation & Communication 7.2 3.1 3.9 4.7 6.8 9.8
Household Operation 2.1 1.8 1.8 1.7 1.6 2.8
Personal Care & Effects 3.8 2.9 3.7 3.9 3.8 3.7
Clothing, Footwear & Other Wear 2.7 1.6 2.1 2.3 2.6 3.7
Education 4.2 1.0 1.0 2.0 3.8 6.5
Medical Care 3.8 1.4 1.6 2.9 3.0 5.4
Durable Furniture & Equipment 4.9 0.0 0.9 1.2 3.6 9.1
House Rent/Rental Value 7.6 8.0 7.0 6.6 7.8 8.0
Special Family Occasions 2.8 0.5 1.1 1.7 2.8 3.8
All Other Expenditures 9.5 8.0 7.1 7.8 9.0 11.5
Source: 2009 FIES, National Statistics Office

More than 50.0 percent of family expenditures in the lower income brackets went to food. Families earning less than 40,000 had as high as 64.9 percent of their expenses spent for food. Expenses for education and medical care were only at 1.0 percent and 1.4 percent, respectively. After food, incomes of low-income families went to house rentals and fuel, light and water. House rentals accounted for 8.0 percent of their expenses while fuel, light and water accounted for 6.6 percent. 

On the other hand, only 31.5 percent of expenses of higher-income families were spent for food followed by transportation and communication (9.8%) and durable furniture and equipments (9.1%).

Family income highest in NCR, lowest in ARMM

Among the regions, families in the National Capital Region (NCR) had, on the average, the highest annual income at P356 thousand while families in the Autonomous Region in Muslim Mindanao (ARMM) had the lowest family income at P113 thousand. CALABARZON (R-IVA), Central Luzon (R-III), Cordillera Administrative Region (CAR) and Ilocos Region (R-I) completed the top five list of regions with higher average family incomes. All of the five regions are in Luzon.

In Mindanao, Davao Region (R-XI) posted the highest average family income at P166 thousand followed closely by Northern Mindanao (R-X) with P165 thousand. SOCCSKSARGEN came in third followed by Caraga (R-XIII) with P149 thousand and Zamboanga Peninsula (R-IX) with P144 thousand. ARMM posted the least average family income of P113 thousand.

At the national level, the average family income was estimated at P206 thousand while average family expenditure was at P176 thousand. Average family savings was estimated at P31 thousand.

The FIES is a nationwide survey undertaken by the National Statistics Office (NSO) every three years. It is the main source of data on family income and expenditures which include levels of consumption by item of expenditure as well as sources of income be it in cash or in kind. 

The FIES is a major source of data used by the National Statistical Coordination Board (NSCB) for estimating the official poverty statistics in the country.