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Cost of Living Survey Report: City/Country: Type of Survey: Date of Survey
Cost of Living Survey Report: City/Country: Type of Survey: Date of Survey
Manila, Philippines
Place-to-place
April 2010
I. INTRODUCTION
1.
A place-to-place cost-of-living survey was carried out by the Cost-of-living Division of the
International Civil Service Commission's secretariat in Philippines in April 2010 for post adjustment
purposes. The survey covered data collection and index calculations for a basket of goods and services
including housing and domestic service costs.
2.
As part of the exercise, a price collection was carried out in Manila in April 2010. The
international officials in grades P-1 through D-1, stationed in Philippines at that time, were requested to
provide information on their household expenditures, as well as on housing and domestic service.
3.
Price data collection for an all-inclusive basket of goods and services was carried out in June
2005 in New York, the base city for cost-of-living index comparisons. Expenditure data collection
covering monthly and less frequent expenditures on food, beverages, clothing and footwear, housing,
domestic service, transportation, communication, furniture and household equipment, health, recreation,
education, miscellaneous goods and services and out-of-area commitments was undertaken in 2005 in the
eight headquarters duty stations and Washington, D.C. The expenditure data excluding housing, pension
contribution, medical insurance and out-of-area expenditures, for those eight duty stations, with minor
adaptations, constituted the common weights that are used for post adjustment index calculations for all
duty stations including Philippines.
II. DATA COLLECTION AND TREATMENT OF PRICES
4.
The price collection was carried out by an independent pricing agent selected after consultation
with the co-ordinator of the survey in Manila . The price collection covered outlets located in Manila . As
a general rule, only prices of goods and services available in the outlets at the time of the visit by the
pricing agent were collected.
5.
The coordinator provided supplementary data on public transportation fares, utility, postal and
telephone service rates and tuition fees.
Average prices
6.
Average prices were calculated for each item as simple arithmetic averages.
Page 1 of 8
Surveys
7.
The data collection process for housing and domestic service costs and household expenditures in
April 2010 involved the use of two questionnaires, which were distributed to staff members, stationed in
Philippines. The survey response by type of questionnaire is presented in table 1 below.
Table 1. Survey response
Type of
questionnaire
Housing &
domestic
service costs
Household
expenditures
Number of
Staff
Number of
respondents
99
64
99
62
63
Responses
used (%)
97
51
82
8.
Also included in the table above is the number and percentage of responses used after excluding
questionnaires received from staff members who were not eligible.
9.
Non-eligible respondents were staff members with less than 3 months at the duty station or living
outside of Manila completing the housing and domestic service costs questionnaire, and those with less
than 6 months for the household expenditure questionnaire; those living in hotels or boarding houses,
sharing expenses of a common dwelling or with income less than 50 per cent of their family income.
III. DERIVATION OF EXPENDITURE WEIGHTS
Weights - Common expenditures and other costs
10.
The common expenditure shares, mentioned in paragraph 3, were combined with the housing
costs in Manila, pension contribution, medical insurance premiums and out-of-area expenditures to
establish the weighting pattern for Manila. The common weights were adapted to the specific situation of
Philippines using the expenditures reported by staff members there in grades P-1 through D-1 who
responded to the survey. The major adaptation involved the proportions of the in-area and out-of-area
expenditures. The final weights were redistributed based on remuneration of a staff member in
Philippines at the dependency rate of a P4 step VI.
Housing and domestic service costs
11.
Information regarding housing and domestic service was derived from the questionnaire.
12.
The following types of expenditures were included in the determination of monthly housing
costs:
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(a)
(b)
Domestic service: The average monthly cost of a full time maid in Manila was also
added to housing costs for comparison with appropriate data for New York.
Pension
13.
The actual amount of pension contribution of a staff member at the P4 step 6 level was included
in the overall expenditure pattern.
Medical insurance
14.
This referred to the actual premiums paid by the staff in Philippines for medical and dental
insurance coverage.
Out-of-area expenditures
15.
Dollar-driven: The following expenditures were considered as fixed-dollar amounts: remittances
to maintain family members abroad; other out-of-area commitments; purchases of durable goods, such as,
furniture, household appliances, glassware, tableware and utensils, sports, photographic, video and audio
equipment; vacations and home leave.
16.
Other: This category included other expenditures incurred outside of Philippines by the staff on
items or groups of items such as clothing and footwear, education etc. In addition, when the out-of-area
expenditure on any particular item or group amounted to 60 per cent or more of the total expenditure on
that item or group, the total expenditure was treated as entirely an out-of-area expendit ure.
Adapted common weights
17.
As a result of the above, the common expenditure weights adapted for Manila together with
those for housing, medical insurance, pension contribution are shown in table 2 below:
Page 3 of 8
Weight
Total in-area
Total in-area excluding housing
5,291.51
3,052.69
991.04
120.61
120.55
2,238.82
117.10
225.83
457.74
208.59
349.29
73.21
250.21
138.53
1,010.39
370.46
2,859.58
Page 4 of 8
20.
Included in the housing costs comparison were the average monthly gross rent, and where
applicable, apportioned charges, pro-rated cost for key-money, amortized cost for repairs and repainting,
average monthly costs for electricity, gas, water and garbage collection and the amortized cost of a
refrigerator, stove and other facilities, as well as the average monthly cost of a full-time maid.
21.
The average housing costs by number of bedrooms for the commercially-rented houses and
apartments in Manila were compared with similar average costs for commercial housing in New York to
obtain cost ratios. The housing costs index was calculated using standardized weights for field duty
stations and then used for the major group "Housing costs". Details of the calculation are given below.
Table 3. Housing costs
Manila, April 2010
(In U.S. Dollars)
Type of dwelling
House
House
House
Apartment
Apartment
Apartment
Number
Rent Utilities Facilities Other
of
bedrooms
3
1,319.48 235.00
19.05
4
2,761.67 309.06
24.34
30.94
5
3,180.52 439.67
20.93
29.58
1
2
3
1,033.97 111.17
1,283.63 199.24
1,957.67 336.55
3.00
1.42
7.86
6.11
19.20
33.78
194.97
194.97
194.97
Average
housing
cost
1,768.50
3,320.98
3,865.67
194.97
194.97
194.97
1,349.22
1,698.46
2,530.83
Domestic
Security
Service
Number of
bedrooms
3
4
5
Number of
Renters
2
6
4
New York
total
3,305.94
4,112.72
4,830.92
1
2
3
5
10
12
39
2,717.37
3,112.54
3,239.60
Manila total
1,768.50
3,320.98
3,865.67
1,349.22
1,698.46
2,530.83
Index
Manila/New York
53.49
80.75
80.02
49.65
54.57
78.12
67.77
Page 5 of 8
Education
22.
The index was based on a comparison of tuition fees between schools attended by the children of
staff in Manila and in New York.
Out-of-area expenditures
23.
The index for out-of-area expenditures, including dolla r-driven, was based on the application of a
special index recommended for use by Advisory Board on Post Adjustment Questions.
Medical insurance
24.
The index for medical insurance was a comparison of the average premium paid by the staff in
Philippines with that paid by those at the same level in New York.
V. SURVEY RESULTS
25.
A summary of the relationship between the cost-of-living in Manila in April 2010 and that in
New York in June 2005 is shown below. Details of indices and weights are shown in the annex.
Page 6 of 8
US $ weight
% Weight
Index
Total
Total Excluding housing
9,531.94
7,293.12
100.00
76.51
100.37
110.38
Total in-area
Total in-area excluding housing
5,291.51
3,052.69
55.51
32.03
90.43
107.05
991.04
120.61
120.55
2,238.82
1,727.51
25.32
280.31
10.71
194.97
117.10
10.40
1.27
1.26
23.49
18.12
0.27
2.94
0.11
2.05
1.23
133.94
153.46
166.15
67.77
225.83
457.74
208.59
349.29
73.21
250.21
138.53
2.37
4.80
2.19
3.66
0.77
2.62
1.45
75.56
116.36
91.51
77.03
43.39
96.06
88.04
1,010.39
370.46
2,859.58
10.60
3.89
30.00
116.57
58.02
118.52
98.40
145.26
26.
The results of the comparison showed that the cost-of-living index for Manila in April 2010 was
100.4 on the base New York, June 2005 = 100 at the exchange rate of P 45.59 to the U.S. dollar. When
that index was rebased to the base, New York November 1995 = 100, it resulted in a post adjustment
index of 145.3.
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Updating
27.
Updating the latter index (145.3) to September 2010 for implementation in November 2010,
based on the movement in the local CPI between April 2010 and September 2010 and using the adapted
common expenditure weights and the change in the out-of-area index, resulted in an index of 147.2 at the
latest exchange rate of P 43.11 per US dollar.
Implementation
28.
As a result of the place-to-place survey in April 2010 and the other adjustments mentioned
above, the existing post adjustment classification of multiplier 44.7 was changed to multiplier 47.2
effective 1 November 2010 on the base New York November 1995 = 100.
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