City Classification

Highly Urbanized Cities - Cities with a minimum population of two hundred thousand
(200,000) inhabitants, as certified by the National Statistics Office, and with the latest annual
income of at least Fifty Million Pesos (P50,000,000.00) based on 1991 constant prices, as
certified by the city treasurer.
Independent Component Cities - Cities whose charters prohibit their voters from voting for
provincial elective officials. Independent component cities shall be independent of the province.
Component Cities - Cities which do not meet the above requirements shall be considered
component cities of the province in which they are geographically located. If a component city is
located within the boundaries of two (2) or more provinces, such city shall be considered a
component of the province of which it used to be a municipality.
Urban/Rural Classification
In the Philippines, urban areas fall under the following categories:
1. In their entirety, all municipal jurisdictions which, whether designated chartered cities,
provincial capital or not, have a population density of at least 1,000 persons per square
kilometer: all barangays;
2. Poblaciones or central districts of municipalities and cities which have a population density of
at least 500 persons square kilometer;
3. Poblaciones or central districts not included in (1) and (2) regardless of the population size
which have the following:

street pattern or network of streets in either parallel or right angel orientation;

at least six establishments (commercial, manufacturing, recreational and/or personal

services);

at least three of the following:

o a town hall, church or chapel with religious service at least once a month;
o a public plaza, park or cemetery;
o a market place, or building, where trading activities are carried on at least once a
week;
o a public building, like a school, hospital, puericulture and health center or library.

4. Barangays having at least 1,000 inhabitants which meet the conditions set forth in (3) above
and where the occupation of the inhabitants is predominantly non-farming or fishing.
RURAL AREAS
All poblaciones or central districts and all barrios that do not meet the requirements for
classification of urban.
Local Government Units
Region - A sub-national administrative unit comprising of several provinces having more or less
homogenous characteristics, such as ethnic origin of inhabitants, dialect spoken, agricultural
produce, etc.
Province - The largest unit in the political structure of the Philippines. It consists, in varying
numbers, of municipalities and, in some cases, of component cities. Its functions and duties in
relation to its component cities and municipalities are generally coordinative and supervisory.
City - There are three classes of cities in the Philippines: the highly urbanized, the independent
component cities which are independent of the province, and the component cities which are part
of the provinces where they are located and subject to their administrative supervision. (see City
Classification)
Municipality - Is a political corporate body which is endowed with the facilities of a municipal
corporation, exercised by and through the municipal government in conformity with law. It is a
subsidiary of the province which consists of a number of barangays within its territorial
boundaries, one of which is the seat of government found at the town proper (poblacion).
Barangay - The smallest political unit into which cities and municipalities in the Philippines are
divided. It is the basic unit of the Philippine political system. It consists of less than 1,000
inhabitants residing within the territorial limit of a city or municipality and administered by a set
of elective officials, headed by a barangay chairman (punong barangay).
Income Classification for Provinces, Cities and Municipalities
(Based on Department of Finance Department Order No.23-08 Effective July 29, 2008)
Provinces
Class

Average Annual Income

First

P 450 M or more

Second

P 360 M or more but less than P 450 M

Third

P 270 M or more but less than P 360 M

Fourth

P 180 M or more but less than P 270 M

Fifth

P 90 M or more but less than P 180 M

Sixth

Below P 90 M

Cities
Class

Average Annual Income

First

P 400 M or more

Second

P 320 M or more but less than P 400 M

Third

P 240 M or more but less than P 320 M

Fourth

P 160 M or more but less than P 240 M

Fifth

P 80 M or more but less than P 160 M

Sixth

Below P 80 M

Municipalities
Class

Average Annual Income

First

P 55 M or more

Second

P 45 M or more but less than P 55 M

Third

P 35 M or more but less than P 45 M

Fourth

P 25 M or more but less than P 35 M

Fifth

P 15 M or more but less than P 25 M

Sixth

Below P 15 M