The Philippine Statistics Authority’s (PSA) Family Income and Expenditure Survey said 0average annual income of Filipino families increased in 2025, but household spending grew at a faster pace.

According PSA survey in 2025, the average annual family income was estimated at P411,350, up 16.5% from P353,230 in 2023. The increase was faster than the 15% growth recorded between 2021 and 2023, when average annual family income stood at P307,190.

Wages and salaries were the primary source of total family income, accounting for 54.6 percent of the total in 2025. This was followed by the following income sources: entrepreneurial activities (15.5%); imputed rent (8.7%); cash receipts from abroad (8.5%); and cash receipts from domestic sources (5.3%).

Other sources of income accounted for the remaining 7.4% of total family income, according to the PSA.

Despite the rise in income, family expenditures grew at a significantly faster rate.

Average annual family expenditure reached P321,850 in 2025, representing a 24.7% increase from P258,050 in 2023.

This was nearly twice the growth recorded in the previous period, with average annual family expenditure rising by 12.8% between 2021 and 2023. In 2021, families spent an average of P228,800 annually.

Food and non-alcoholic beverages accounted for the largest share of the total family expenditure of Filipino families at 33.3 percent.

This was followed by the following expenditure groups:

• Housing, water, electricity, gas and other fuels (21.6%)
• Restaurants and accommodation services (7%)
• Transport (6.9%)
• Personal care, miscellaneous goods and services (4.2%)
• Health (3.5%)