According to the National Economic Development Authority in the Philippines, this is what people should be aiming for:
It’s about 47 pesos to $1. 120,000 pesos monthly income. $2553 in USD.
People in the Philippines don’t actually make that. Average income is P235,000 = $5000 USD annually. $416/month.
A software engineer in Manila would make P363k = $644/month. The place I’m staying at would come to $480/month, completely unaffordable.
So you can see that even for somebody with a good profession, this estimate by NEDA is 400% of that.
Car is $106
House is $638
Monthly expenses is $851
Income tax is $532 (actual tax rates are much higher than this)
Entertainment is $85
Travel is $128.
$213 is specifically ear marked for kids education. I’m not sure most people in the US even set aside that amount for college… and their incomes are much higher than $30,636… and the colleges are much more expensive.
Philippines has the 2nd highest income tax in ASEAN.
The Association of Southeast Asian Nations (ASEAN) is an alliance promoting economic and political cooperation by fostering dialogue among its ten members: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.
32% of all money over $10k USD.
Singapore has the lowest personal income tax rate, Thailand and Vietnam the highest (although they have significantly lower corporate income tax rates).
“The Philippines has been struggling with our fiscal deficit for some years now and one way to fix that is to impose hefty taxes on its citizenry and corporates. Thus we’ve seen tax rates increased to their current levels,” Bank of the Philippine Islands (BPI) research officer Nicholas Antonio Mapa said in an email.
The US will probably do a combination of increased taxation + inflation to handle its debt. Hooray.
Looking at these numbers, it’s clear that the Philippines needs to attract outside investment / exports.