Cost of Living in the Philippines

The cost of living in the Philippines is rising, and expenses aren’t as cheap as new arrivals may expect. Nevertheless, most expats find living in the Philippines relatively affordable, especially compared to some Southeast Asian countries.

According to Mercer’s 2024 Cost of Living Survey, Manila ranked 131st out of the 226 cities surveyed. The capital city’s cost of living has recently increased slightly, moving from 133rd in the 2023 survey. Still, Manila remains more affordable than Lisbon, Portugal, and Buenos Aires, Argentina.

Within the Philippines, the cost of living depends on where expats choose to live. Overall, Manila is the most expensive area, with Cebu trailing closely behind. The outlying islands and rural provinces are much more affordable.

Cost of accommodation in the Philippines

Accommodation will likely be an expat’s biggest monthly expense in the Philippines. Rental prices vary considerably; generally, the closer to tourist areas and city centres, the more a tenant will pay. Prospective house hunters should know that many landlords prefer renting to foreigners and may charge higher rental fees.

Utilities such as water and electricity are often additional costs for tenants. Other monthly payments include internet, telephone line, cable television and air conditioning maintenance. Note that electricity is expensive in the Philippines, and these costs will rise during the intense summer months when air conditioning use typically increases. Moreover, many homes do not have central air conditioning, so expats may need to pay out of pocket to install it.

Fortunately, expats moving to the Philippines as part of an international relocation usually have their housing expenses covered by their company. Expats in the Philippines can also typically afford household help such as nannies, drivers, gardeners and domestic cleaners.

Cost of groceries in the Philippines

The cost of food in the Philippines is lower than many expats may expect. Cheap fresh produce is readily available at local markets and street vendors, but imported Western foods and international brands in supermarkets are expensive.

Food in restaurants is affordable, and many expats will find that they can eat out regularly. Cigarettes and alcohol are also inexpensive.

Cost of healthcare in the Philippines

The standard of healthcare in the Philippines varies, with hospitals in the major cities offering exceptional care and the rural areas leaving much to be desired. Expats working in the Philippines will likely need to contribute to the national health insurance, PhilHealth, and receive free care. Healthcare professionals in the Philippines are generally highly trained, but equipment at public hospitals may not be up to standard. Expats who can afford it should consider purchasing a health insurance policy to have affordable access to private hospitals and their top-tier equipment and infrastructure.

Cost of entertainment and eating out in the Philippines

The lifestyle in the Philippines offers activities to suit all preferences and budgets. Budget-conscious expats will find delicious local cuisine at their neighbourhood restaurants at a low price, while there are also opportunities for fine dining in major cities such as Manila and Cebu.

Most of the leisure activities in the Philippines centre on outdoor and water activities. Thanks to the country’s breathtaking natural landscape, expats can swim, surf, hike and scuba dive for a nominal fee. To save even further, expats can invest in their own surfing and diving equipment.

Cost of education in the Philippines

Families moving to the Philippines with children will find the cost of school and education another significant expense for expats after accommodation. Most expats in the Philippines send their children to international schools, which generally come at a hefty price but offer exceptional, globally recognised curricula.

Cost of transport in the Philippines

Public transport in the Philippines is fairly cheap. While using a taxi regularly can become expensive, local jeepneys and buses are the more economical options.

Expats looking to buy a car in the Philippines will find that the cost in the country is proportionally higher than in their home countries due to high import duties. Many expats hire a driver, and companies often provide them for their senior executives working in the Philippines, so expats should consider this during their contract negotiations.