There is no single cost of living figure for the Philippines. Official data gives three reference points instead, all from the Philippine Statistics Authority (PSA), and all in pesos:
| Reference point | Figure | What it means |
|---|---|---|
| Poverty threshold, 2025 | PHP 14,634 a month for a family of five | The minimum PSA says a family needs for food and basic needs (PHP 35,121 per person a year). Preliminary, released 21 August 2026 |
| Average family spending, 2025 | PHP 321,850 a year, about PHP 26,821 a month | What Filipino families actually spent on average, from the Family Income and Expenditure Survey (FIES). Preliminary, released 26 August 2026 |
| Inflation, September 2026 | 7.2% a year | How fast prices were rising. The average for January to September 2026 was 5.4%. Released 6 October 2026 |
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The poverty threshold is a floor. Average spending is an average across all families, rich and poor, in the city and the countryside. Your own cost of living depends on where you live, how many people you support, and how you want to live.
What families spend money on
The 2025 FIES (preliminary) shows where the average family’s money went:
| Spending group | Share of family spending, 2025 |
|---|---|
| Food and non-alcoholic drinks | 33.3% |
| Housing, water, electricity, gas and other fuels | 21.6% |
| Restaurants and accommodation | 7.0% |
| Transport | 6.9% |
| Personal care and other | 4.2% |
| Health | 3.5% |
| Insurance and financial services | 3.2% |
| Education | 3.1% |
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Average family income in 2025 was PHP 411,350 a year and spending PHP 321,850, up from PHP 353,230 and PHP 258,050 in 2023. Food takes the biggest share, so food prices matter most to a household budget.
How it changes by region
Costs differ a lot from one region to another. This table covers the regions of the 20 places we compare, with Metro Manila for reference.
| Region | Poverty threshold 2025, family of five a month | Minimum wage a day (non-agriculture) |
|---|---|---|
| NCR (Metro Manila) | PHP 16,842 | PHP 755 |
| CAR (Cordillera) | PHP 14,511 | PHP 505 |
| Region I (Ilocos) | PHP 15,331 | PHP 505 |
| Region III (Central Luzon) | PHP 16,876 | PHP 560 to 600 |
| Region IV-A (CALABARZON) | PHP 16,324 | PHP 525 to 600 |
| MIMAROPA | PHP 13,350 | PHP 455 |
| Region V (Bicol) | PHP 15,012 | PHP 455 |
| Region VI (Western Visayas) | PHP 14,683 | PHP 550 |
| Negros Island Region | PHP 15,018 | PHP 542 to 550 |
| Region VII (Central Visayas) | PHP 14,476 | PHP 542 to 582 |
| Region IX (Zamboanga Peninsula) | PHP 14,348 | PHP 464 |
| Region X (Northern Mindanao) | PHP 14,938 | PHP 485 to 500 |
| Region XI (Davao) | PHP 13,908 | PHP 540 |
| Region XII (SOCCSKSARGEN) | PHP 12,627 | PHP 460 |
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Poverty thresholds: PSA, 2025 (preliminary), released 26 August 2026. Wages: NWPC table of 6 October 2026, highest rate band shown where the region has more than one. The Negros Island Region has no wage board of its own yet: Negros Occidental follows Region VI’s rates and Negros Oriental follows Region VII’s.
Inflation also differs by region. Our guide to inflation in the Philippines lists the latest PSA rate for each region. For a city-by-city view with hospitals, airports and climate, see where to retire in the Philippines: 20 places compared.
Wages as a cost signal
A retiree does not earn a wage, but local wages still shape what you pay. The regional minimum wage is a rough guide to the cost of a tricycle driver, a carpenter for repairs, a caregiver or help at home.
Domestic workers (kasambahay) have their own monthly minimum, set by each regional board. Examples from the NWPC on 20 October 2026: PHP 7,800 a month in Metro Manila, PHP 6,600 in the Cordillera, PHP 7,500 in Central Visayas (from 14 October 2026), and PHP 6,500 in Western Visayas, Northern Mindanao and Davao’s cities. If you plan to hire help, budget at least the minimum for your region.
Costs a returning OFW meets that the averages miss
- Housing: the FIES share for housing is an average across families who own, rent or live with relatives. If you will rent or build, there is no official rent or property price figure by city, so check local listings and ask people in the area.
- Health costs beyond PhilHealth: PhilHealth pays part of a hospital bill. The rest comes from you, an HMO or insurance. The FIES health share (3.5%) is an average for all families, so plan your own figure.
- Electricity: rates differ by utility. As one dated example, Meralco, which serves Metro Manila and nearby provinces, announced an overall rate of PHP 15.0615 per kWh for a typical household in October 2026. Check your own area’s utility for its rate.
- Transport without a car: check what public transport runs where you plan to live. Tricycle and private hire costs add up.
- Family: if you support parents, siblings or children’s schooling, add that on top. It is not in any average.
Your own budget
Start from what you spend now, or from a place preset. The OFW retirement calculator lets you type your own monthly figure or start from one of 20 places’ poverty thresholds, then shows what that spend becomes by the time you retire and the fund you would need.
Prices rise every year. Inflation averaged 5.4% for January to September 2026, against 1.7% for 2025 as a whole. See inflation and your retirement savings for what that does over twenty years.
Converting to dollars or other currencies
To turn a peso budget into the currency you earn, divide by the exchange rate. The Bangko Sentral ng Pilipinas (BSP) publishes a reference rate each working day. On 19 October 2026 it was PHP 63.068 to the US dollar.
For example, the 2025 poverty threshold for a family of five, PHP 14,634 a month, is about USD 232 at that rate. That is the poverty line: the minimum for food and basic needs.
Exchange rates move. A peso budget that looks small in dollars today can look bigger if the peso strengthens, so leave room for the rate to change.
Talk it through
Work out your retirement budget with usSources
- PSA, 2025 Full Year Official Poverty Statistics (preliminary), national release, 21 August 2026 (checked 20 October 2026)
- PSA, 2025 poverty statistics by region and province, 26 August 2026 (checked 20 October 2026)
- PSA, 2025 Full Year Official Poverty Statistics, source tables (XLSX) (checked 20 October 2026)
- PSA, 2025 Family Income and Expenditure Survey (preliminary), 26 August 2026 (checked 20 October 2026)
- PSA, FIES 2025, Table F: shares of family expenditure (checked 20 October 2026)
- PSA, Consumer Price Index and inflation rate releases (checked 20 October 2026)
- NWPC, Summary of Current Regional Daily Minimum Wage Rates, 6 October 2026 (checked 20 October 2026)
- NWPC, regional wage boards and domestic worker wage orders (checked 20 October 2026)
- Meralco, higher residential rates this October 2026 (checked 20 October 2026)
- BSP, Reference Exchange Rate Bulletin, 19 October 2026 (checked 20 October 2026)