Cost of Living in the Philippines: Managing Your Finances Abroad

In this article, we will take you through some of the costs associated with living in the Philippines, and by the end, you’ll have more information about how to plan your finances for your time in the Philippines.

The cost of living is more than 55 percent lower in the Philippines than in Australia.

Rent is nearly 78 percent higher in the Philippines than in Australia.

How Much Does it Cost to Live in the Philippines? The Basics

Moving overseas is a big step. You’ll have to get used to a new place, a new culture and many new people. If you’re considering moving to the Philippines, you’ll need to know exactly how to make the most of your experience, and of course, the most of your money. The cost of living in the Philippines is dependent on many different factors: where you live, what food you like to eat, how much you spend on leisure activities and many more things.

You can transfer money to the Philippines with e-Pocket. To learn more about the Philippines, have a look at our Philippines blog page.

Cost of Living in Major Cities in the Philippines

As a general rule, you can expect to pay more money in the big cities in the Philippines. That said, prices range quite significantly depending on which city you happen to be in. Here is a closer look at the cost of living in the three largest cities in the Philippines. You can check out the cost of living in many cities in the Philippines using Numbeo.

Keep in mind, these numbers are averages, current and subject to change.

	Quezon City	City of Manila	Davao City
Inexpensive meal at restaurant	PHP 200.00	PHP 250.00	PHP 250
Three course meal for two people	PHP 1,350.00	PHP 1,550.00	PHP 1500
Half-litre of domestic beer	PHP 75.00	PHP 70.00	PHP 73.00
Third-litre of soft drink	PHP 56.25	PHP 52.63	PHP 43.25
Third-litre of water	PHP 25.09	PHP 25.71	PHP 25.00
1 litre of milk	PHP 101.25	PHP 101.11	PHP 98.75
Loaf of bread	PHP 71.43	PHP 77.62	PHP 69.00
12 Eggs	PHP 119.17	PHP 114.78	PHP 110.50
Beef – 1 kilogram	PHP 382.86	PHP 431.91	PHP 412.50
Apples – 1 kilogram	PHP 206.67	PHP 174.39	PHP 157.67
Bananas – 1 kilogram	PHP 91.22	PHP 93.61	PHP 57.40
One-way public transport ticket	PHP 29.03	PHP 30.00	PHP 12.00
1 litre of gas	PHP 70.76	PHP 76.28	PHP 72.73
Toyota Corolla Sedan	PHP 1,212,500.00	PHP 1,157,142.86	PHP 1,366,250.00
Basic utility bills (monthly)	PHP 11,102.09	PHP 6,621.30	PHP 5,322.92
Fitness club (monthly)	PHP 2,274.01	PHP 2,225.00	PHP 2,900.00
Movie ticket	PHP 400.00	PHP 350.00	PHP 255.00
Pair of jeans	PHP 1,643.08	PHP 1,868.75	PHP 4,000.00
One bedroom apartment in city (monthly rent)	PHP 18,131.39	PHP 28,660.10	PHP 16,285.71
One bedroom apartment outside city centre (monthly rent)	PHP 11,612.94	PHP 15,230.77	PHP 8,375.00

Then you will have to consider how much money you actually have. The average money net salary after tax varies considerably from city to city. For example, the average monthly salary in Quezon City is PHP 27,488.10, while it is PHP 28,409.09 in the City of Manila and in Davao City.

How to Reduce Your Expenses in the Philippines

There are many ways to reduce your expenses when living in the Philippines. For example, eating out tends to be far more expensive than eating at home – around twice the cost when averaged out. Nonetheless, while there are many high-end restaurants in major cities in the Philippines, you’ll certainly be able to find many cheaper options if you’re sufficiently diligent in your research. Shopping at food markets is generally cheaper than shopping at supermarkets, and you’ll likely be able to find bakeries that sell cheap bread.

Major cities in the Philippines are full of clothes shops. In general, name brands are on the expensive side when compared to the overall cost of living. But there are so many clothes shops, you’ll likely be able to find good deals if you look hard enough.

There are significant gaps in rent prices depending on where you live. Often an apartment in the city will actually cost more than twice as much as an apartment outside the city. Obviously living outside the city might come with extra expenses, such as public transport or gas prices, so there are many different things to consider.

The Cost of Living in Rural Philippines

The cost of living in the more rural parts of the Philippines is significantly lower than in the metropolitan areas. This will vary based on exactly location and your lifestyle, but accommodation and food expenses are almost always lower. Of course, this is generally offset by the lower wages and job opportunities in such areas.

Costs in Rural Philippines

Rent. You will likely pay somewhere between PHP 5,000 and PHP 10,000 per month for a one bedroom apartment, depending on facilities and location.

Food. You’ll save a lot of money on food if you live in a rural area, especially if you shop at markets.

Transport. There are lots of cheap transport options in rural Philippines. A ride on a jeepney or tricycle usually costs between around PHP 10 and PHP 30, depending on how long your ride is.

Utilities. Basic utilities cost between around PHP 3,000 and PHP 7,000, depending on your usage level.

Healthcare. Healthcare prices in rural Philippines are usually much lower than in urban areas. But this comes with a catch. The quality of healthcare in these areas is often much lower, and many types of treatment will be unavailable. This will vary greatly depending on what part of the country you’re in. It’s important you do your research and consider everything about your life circumstance when looking into rural areas in the Philippines. You want to get the most accurate understanding of the cost of living when considering what place will suit you the best.

Compare Australia’s Cost of Living to the Philippines

Across the board, the cost of living is much lower in the Philippines than it is in Australia. Of course, the average yearly wage is much lower in the Philippines, so there are always a multitude of factors to consider when deciding the best place to live. We have compiled a list of the differences in everyday living costs in the two countries. These are based on the most recent numbers and exchange rates at the time of publication.

	Philippines	Australia	Difference
Lunch in a city	AU$7	AU$23	AUS + 71 %
1 litre of milk	AU$2.65	AU$1.92	AUS – 38 %
1 kilogram of tomatoes	AU$ 2.42	AU$6	AUS + 62 %
1 kilogram of potatoes	AU$2.78	AU$3.83	AUS + 28 %
Domestic beer	AU$1.78	AU$6	AUS + 71 %
2 litres of coke	AU$2.65	AU3.66	AUS + 28 %
Housing			AUS + 53 %
Entertainment			AUS + 59 %

There are a number of great websites you can use to compare prices: Expatistan LivingCost and My Life Elsewhere.

Expenses in the Philippines for a Temporary Stay

Finally, we know that many people will only be spending a short amount of time in the Philippines. We’re sure a lot of the things we’ve covered in this blog will be relevant to you, but there will be many other expenses that pop up. So make sure you have thought of absolutely everything you possibly can.

Don’t forget, there’ll be a lot of pre-departure expenses you’ll need to cover. This might include visas, your passport and travel insurance. Then there are the departure expenses, like flights, accommodation, and transport.

Whatever you budget for, it is a good idea to allow for unexpected expenses that might pop up as well. For example, you don’t want to get sick without having health insurance. You can find out more about it here: health insurance in the Philippines.

You also need to know how much your money will be worth in the Philippines. Our exchange calculator is a very effective way of doing this, and we have some of the best rates on the market. You won’t be charged any fees when remitting money to the Philippines, or any other country.

Conclusion

You now know some of the costs of living in the Philippines. Knowing the costs in particular areas will help you make the most informed decision about where to live. As always, we advise you to do the most comprehensive research you can. Consider your income, the kind of things you like to do for fun, how much you’ll be paying for accommodation, and any expenses you can think of.

For anyone moving to the Philippines, we hope you have a great time there. Read some of our Philippines blogs if you want to learn more about the country. Visit our Transfer Money to the Philippines page to make a transfer.