The average Annual Family Income in 2023 increased by 12.3 percent

The average annual income of Filipino families in Davao del Sur was estimated at PhP292.43 thousand. This represents a 12.3 percent increase compared to the PhP260.34 thousand average annual family income recorded in 2021.

On the average, families in Davao del Sur spent PhP186.72 thousand from January to December 2023. This was a 14.0 percent increase compared to the PhP163.75 thousand average annual family expenditure of 2021.
 

Moreover, among the provinces in Davao Region, Davao del Sur remains at the second rank with the highest average annual family income in 2023 next to Davao City with 412.91 thousand. Followed by Davao de Oro, Davao del Norte, Davao Oriental, and Davao Occidental with average annual family income having PhP277.72 thousand, PhP264.91 thousand, PhP217.75 thousand, and PhP205.80 thousand, respectively. Furthermore, Davao del Sur’s average annual family expenditure ranked third. The highest average annual family expenditure was recorded in the City of Davao with PhP238.47 thousand, followed by Davao del Norte having PhP219.45 thousand. Davao de Oro, Davao Oriental, and Davao Occidental has an average annual family expenditure of PhP164.95 thousand, PhP157.72 thousand, PhP150.45 thousand, respectively (Table 1)

Additionally, all provinces in Davao Region had a percentage increase in the average annual family income and average annual family expenditure. Davao del Sur, City of Davao, Davao de Oro, Davao del Norte, Davao Oriental, Davao Occidental has an average annual family income growth rate of 12.3 percent, 12.1 percent, 35.1 percent, 3.8 percent, 3.6 percent, 18.1 percent, respectively. Furthermore, Davao del Sur, City of Davao, Davao de Oro, Davao del Norte, Davao Oriental, Davao Occidental has an average annual family expenditure growth rate of 14.0 percent, 4.2 percent, 19.1 percent, 21.7 percent, 6.2 percent, 19.0 percent, respectively.
 

Davao del Sur ranked third in total annual family income in 2023

In Davao Region, the total annual family income grew by 19.3 percent, reaching PhP468,674.28 million in 2023 from PhP392,797.22 million in 2021. Furthermore, the annual family expenditure in the Region also increased of about 17.2 percent, from PhP256,249.82 million in 2021 to PhP300,246.10 million in 2023. Among the provinces in Davao Region, Davao del Sur ranked third with the highest total annual family income in 2023 next to City of Davao and Davao del Norte with PhP61,206.66 million. In addition, Davao del Sur’s total annual family expenditure also ranked third with PhP39,081.79 million following City of Davao and Davao del Norte with 134,552.91 million and PhP57,132.86 million, respectively. (Table 1)

Moreover, all provinces in Region XI had increased total family income and total family expenditure from January to December 2023. The highest total annual income growth rate was recorded in Davao de Oro with 39.4 percent, followed by the City of Davao with growth rate having 21.2 percent, Davao Occidental with 20.5 percent, Davao del Sur with 20.3 percent, Davao Oriental with 7.8 percent and Davao del Norte with 6.2 percent growth rate. On the other hand, Davao del Norte, Davao de Oro, Davao del Sur, Davao Occidental, City of Davao and Davao Oriental posted an annual family expenditure growth rate of 24.4 percent, 22.9 percent, 22.1 percent, 21,4 percent, 12.7 percent and 10.5 percent respectively. (Table 2)
 

Average Annual Family Income Grows among Lower Income Decile Groups

The average annual family income in Davao del Sur in 2023 posted positive growth rate in all income decile groups. The first income decile grew by 21.9 percent, the second income decile grew by 19.1 percent, the third income decile grew by 19.4, the fourth income decile grew by 7.9 percent, and the fifth income decile grew by 15.1. Furthermore, the sixth income decile grew by 14.7 percent, the seventh income decile grew by 14.2, the eighth income decile grew by 18.4 percent, the ninth income decile grew by 24.9 percent, and the tenth income decile grew by 1.0 percent of average annual family income growth rate. (Figure 3)
 

Income disparity contracts in 2023

The Davao del Sur’s total annual family income of the upper 10 percent income group was 5.93 times as much as that of the bottom 10 percent income group. On the other hand, the total annual family income of the upper 20 percent income group was 3.93 times as much as the total annual family income of the bottom 20 percent income group and the total annual family income of the upper 10 percent income group was 1.21 times as much as the total annual family income of the bottom 40 percent income group.

Income inequality can also be measured using the Palma ratio, which is calculated as the ratio of the total family income of the upper 10 percent income decile group to the lower 40 percent income decile group. In 2023, it was observed that the income inequality measured by the Palma ratio of the Davao Region was reduced to 1.13 from 1.26 in 2018, implying lower income inequality in 2021. The income inequality measured by the Palma ratio of Davao del Sur was reduced to 1.21 from 1.39 in 2021, implying lower income inequality in 2023.
 

Wages and Salaries remain as the primary source of total family income

In 2023, the majority source of total family income in Davao del Sur comes from wages and salaries, which account for 52.3 percent, this is a 2.6 percentage increase from 49.7 percent in 2021. This indicates that wages and salaries remain as the primary source of total family income in Davao del Sur. This is followed by Entrepreneurial Activities having a significant portion of the total family income of 22.9 percent. Imputed rent, cash receipts from abroad, cash receipts from domestic sources, having a share to total family income with percent contributions of 6.5 percent, 6.0 percent, 3.8 percent, respectively.

Moreover, sources from pension, received as gifts, net share, net receipt, rentals received, dividends, other sources of income, and interest, contributed an overall total of 8.6 percent.
 

Approved for Release:

JESSIE A. MADULIUN
(Chief Statistical Specialist)
Officer-In-Charge
Davao del Sur Provincial Statistical Office