Senator Loren Legarda has sought a Senate inquiry into whether the Philippines’ new upper middle-income status will translate into higher-quality jobs, stronger public services and better living conditions for ordinary Filipinos.
Legarda filed Senate Resolution No. 505 directing the chamber to examine the implications of the country’s reclassification and identify policies needed to turn the milestone into inclusive and lasting growth.
The World Bank elevated the Philippines to upper middle-income country status effective July 1, 2026, after gross national income per capita reached $4,850 in 2025, above the $4,636 threshold.
The Philippines had remained in the lower middle-income bracket since 1987, taking nearly 39 years to move to the next classification.
Legarda cautioned, however, that the new label should not be mistaken for proof that most Filipinos already enjoy a middle-class standard of living.
“Hindi sapat ang bagong tatak na Upper Middle-Income Country kung ang karaniwang Pilipino ay patuloy na nahihirapan sa mababang sahod, kulang na serbisyong panlipunan, at hindi pantay na oportunidad,” she said.
“Ang hamon sa pamahalaan ay gawing inklusibo ang paglago, na ang bawat Pilipino, lalo na ang nasa laylayan, ay may marangal na trabaho, maayos na kalusugan, at patas na bahagi sa kaunlaran. Ang bagong katayuan ng bansa ay dapat maging simula ng mas malalim na reporma, hindi pagtatapos ng laban,” she added.
The resolution cited persistent barriers to inclusive growth, including poverty, underemployment, corruption and wealth inequality.
Poverty incidence stood at about 15.5 percent in 2023, while a 2026 Philippine Institute for Development Studies report found that 30 percent of households remained highly vulnerable to falling back into poverty because of economic shocks.
Underemployment was recorded at 11.9 percent in 2025, reflecting the continued prevalence of unstable and low-paying work.
The resolution also noted that the wealthiest 20 percent of Filipinos controlled nearly half of national income, while the poorest 20 percent received only 5 to 6 percent.
Legarda also pointed to the country’s heavy reliance on overseas remittances, which accounted for 8.7 percent of gross domestic product in 2024—the highest share among major Southeast Asian economies cited in the resolution.
The Philippines scored 32 out of 100 in the 2025 Corruption Perceptions Index and ranked sixth lowest in East and Southeast Asia in the 2026 Good Life Index, which measures areas such as healthcare, public safety and social support.
Legarda said the new classification should be viewed with humility and responsibility, noting that it was built on decades of work by Filipino laborers, farmers, fisherfolk, professionals, entrepreneurs, overseas workers, taxpayers and public servants.
“Hindi ito tagumpay ng isang administrasyon lamang. Ito ay bunga ng pawis, sakripisyo, at tibay ng loob ng mga manggagawa, magsasaka, mangingisda, propesyonal, at mga Pilipinong nagtaguyod ng bansa sa loob ng maraming dekada,” she said.
“Ang tunay na sukatan ng kaunlaran ay kung mararamdaman ng bawat pamilya ang ginhawa sa kanilang araw-araw na pamumuhay, hindi lamang sa mga numero ng ekonomiya,” she added.
Under the resolution, the Department of Economy, Planning, and Development, in coordination with the Department of Finance and other agencies, would be required to submit a comprehensive report on the effects of the new classification.
The report must assess its impact on concessional financing, official development assistance, grants, loan terms, sovereign borrowing, fiscal space and public investment planning.
It must also identify risks arising from reduced access to concessional financing and recommend medium- and long-term measures to sustain the country’s income status while advancing poverty reduction, decent employment, domestic productivity and improved public services.