An Attempt to define Philippine Socioeconomic classes ABCDEMarket researchers and brand marketers usually use five socioeconomic classes — Class A, B, C, D, E — when describing income segments of a population. In the case of the Philippines, it’s tough to describe who really comprise these segments and how much percentage they are compared to the total population due to lack of credible and substantive researches. 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. 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, (even without steady annual income)? 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 uberrich but do they fall under Class A (despite the absence of a steady income stream)? The market prices of land in those subdivisions may range from P30,000-P90,000 per square meter, so if you are to own a 1,000-square meter house and lot inside these villages, you are “worth” between P30 million and P90 million on average. If you can afford that, does that mean you are part of Class A? Or is that Class B (without income)? How do we distinguish between Class A and Class B? Class E vs. Classes C and D The other extreme segment of the population, meaning, they are not assured if they will have Class E, is also easier to distinguish. something to eat by the next meal time. What about security guards grossing P16,000 a month but leaving in squatter areas? Are they C or D? Typically Class E people 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”). Some barely possess any property or asset and Meanwhile, distinctions between income classes C and D are vaguely known. One of them may be called the “middle class” and another, they usually live on a hand-to-mouth basis, the “masa” segment - but which one exactly? 4 Simply speaking. the NSCB simply grouped the country into three segments: the high income. Population Percentage: Classes A.000 a month or P2.000 — can this be considered high income or middle income? What if the monthly income of a household is P20. instead of dividing the Philippine population into Classes A.It’s even possible that the “middle class” and the “masa segment” may be just one and the same. numbering only 0. However. E Another research we found that attempted to Philippines is the 2011 report published by determine the number of Classes ABCDE in the polling firm Social Weather Stations (SWS) . if a family’s monthly income is around P80. The “middle income” class is said to earn an average of P36.1% of total families in the Philippines. or low income class? The FIES report does not provide a concrete answer.000 — is this middle or low income? High income segments are families or people earning an average of P200. For example. we want to know: When can we say if a family or a person belongs to the million a year. “Middle class” We found a dearth of relevant reports that can help define the income classes. D or E. it is still not detailed enough. most at the bottom. C. middle income. or a society “with a small elite at the top. D. The latest “Family Income and Expenditure Survey” (FIES) of the National Statistical Coordination Board (NSCB) offers some. and identified in our previous article Social class structure: Income distribution between rich vs. albeit not that exhaustive. more people in the middle. middle income. B. unfortunately. C. high income. which class then does the “average” Filipino belong? Class C or D? “Rich” vs.” If majority of the population are said to be “at the bottom. they may be described as the “rich” segment. If we look at the income pyramid poor.061 per month.” (where exactly is the poverty line?). and low income groups. information about income classes in the country. “Poor” vs. They are very few. It is good to know that the FIES report has those details. Thus. we can see that he income structure in the Philippines is Type 2.934 per month while the low income segment earns an average of P9. B. the results are also alarming. Class E. indeed. Worse. nominal terms. Judging by this huge that more research will give us a clear picture of the percentage. D or E. If we looked at income distribution. SWS. Future reports may in the country is Class D. description of each class. respondents refuse to participate in the survey. Data from the report are summarized in this table. Despite comprising only 1% of the If we assume that each family is comprised of five (5) Philippine population. the AB classes number only 185. under this class. they are very. six (6) out of every 10 country but provide a good foundation. Around 30% of Filipino families are classified Philippine population. B.000 This SWS survey shows that the high income AB The poorest segment.000 D 60% 56% PHP191. we can say that the “masa” population income classes in the Philippines. . We hope Filipinos belong to Class D. The report warns.857. C.000 Total 100% 100% PHP206. income classes A and B own people. Percentage Distribution of Socio-economic Classes (SWS) Class % Share in Number of Families % Share in Total Income Average Annual Income AB 1% 9% PHP1.000 E 30% 9% PHP62. Very obvious income disparity. As expected. which undoubtedly confirms that very few. offer solutions on how to reduce income disparity in the Philippines . their barely 1 million people.entitled “Family Income Distribution in the Philippines from 1985 to 2009”. the AB population of the Philippines is 9% of total incomes in the country.000 families. with class D The reports we cited are not be detailed enough for representing the largest bulk of families in the us to fully understand income segments in the Philippines: 60%.000 C 9% 26% PHP603. Still the report is useful for those interested in knowing how many in the Philippine population belongs to This report offered insights regarding income classes but was also silent on the actual Classes A. also comprises a big classes represent only 1% of the families in the chunk.Sources: NSCB. If we are to translate this percentage into poverty in the Philippines remains prevalent. though. Meanwhile Class C comprises 9%. income is almost equivalent to the total income that this number may be higher because most AB earned by 30% of the families in the Philippines. Therefore.