Two in three Filipino families earn below living wage — Ibon Foundation
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An estimated two in three Filipino households fail to earn a family living wage amid inflation and global oil shocks, according to socio-economic think tank Ibon Foundation.
During an interview, Ibon Foundation Executive Director Sonny Africa discussed the economic conditions facing the working class.
"Our estimate is that two in three families no longer reach the family living wage," Africa said. "That's a lot, probably reaching almost 17 million families that do not reach the family living wage."
While the foundation places the ideal national average family living wage for a family of five at P1,312 per day, the actual average minimum wage is currently P510. Africa attributed the gap to persistent inflation and rising costs of basic commodities.
Africa said the government's fiscal response shows a contrast between how the state treats the working class and wealthy sectors.
"Why is it so difficult to reduce the tax on the poor and middle class, but so easy and fast for Congress to move to reduce the tax on wealthy families and large corporations? It's unfair," Africa said during the broadcast.
He pointed to the administration's reduction of corporate taxes through the CREATE and CREATE MORE laws.
"If the corporate income tax hadn't been lowered by the CREATE and CREATE MORE laws, the government would have an additional P300 billion in revenue," Africa said. "But because of the CREATE law, companies have more or less an additional P280 billion in profits. Their businesses didn't grow, their taxes were just reduced."
According to the think tank, the government avoids lowering consumption taxes due to concerns over funding the country's national debt, which reached a record P18.49 trillion by the end of March 2026. Africa noted this translates to roughly P164,000 in debt per Filipino, adding that borrowed funds largely benefited private real estate values rather than the general public.
"The government's biggest problem is not the lack of funds," Africa said. "Its biggest problem is not collecting the right and proper amounts from those who can afford it."
Africa urged the government to suspend consumption taxes, such as the value-added tax and excise tax on oil, and to increase the personal income tax exemption ceiling from P250,000 to P450,000. He estimates this would provide immediate relief to about 8.5 million families.
To fund these programs and provide wage subsidies for micro, small and medium enterprises (MSMEs) without incurring further debt, Africa proposed implementing a sovereign wealth tax targeting the country's 3,000 billionaires.
The proposed wealth tax could generate at least P468.8 billion in state revenues, shifting the financial burden of economic recovery toward the elite, according to Ibon Foundation estimates.
