Manila VS Panama City

Cost of Living & Salary Comparison 2026

Manila
Philippines
26.8
COLI Index
#90
Global Rank
PHP
Currency
Panama City
Panama
42.3
COLI Index
#64
Global Rank
USD
Currency

Key Differences

Cost of Living
26.8
42.3
1BR Rent (USD/mo)
$500
$1,000
Total Deductions
21.4%
19.5%
Exchange Rate
1 PHP = 0.0178 USD
Is Manila cheaper than Panama City?

Yes, Manila is 37% cheaper than Panama City based on our cost of living index. Manila has a COLI of 26.8, while Panama City has a COLI of 42.3. 37% cheaper

Key Takeaways: Manila vs Panama City

Overall, Manila is approximately 37% cheaper than Panama City based on our cost of living index. Manila has a COLI of 26.8 (ranked #90 of 182 cities), while Panama City has a COLI of 42.3 (ranked #64).

When it comes to housing, one-bedroom apartment rent in Manila averages $500/month compared to $1,000/month in Panama City. That makes Manila approximately 50% cheaper for rent alone.

Panama City has lower total deductions (19.5%) compared to Manila (21.4%), meaning you keep more of your gross salary in Panama City. When evaluating a relocation, remember that total deductions directly impact your take-home pay and should be weighed alongside cost of living differences.

Tax & Deductions Comparison

Full breakdown of mandatory payroll deductions for a mid-range salary as a local employee in each city.

Manila

Income Tax
16%
SSS + PhilHealth + Pag-IBIG
5.0%
Total: 21.4%Take-Home: ₱886,819/yr

Panama City

Income Tax
10%
CSS
9.8%
Total: 19.5%Take-Home: $25,523/yr

Rates shown for local employees. Expat deductions may differ — use the main converter for personalized calculations.

Salary Equivalent

If you earn ₱4,207,455 in Manila, you would need approximately $118,377 in Panama City to maintain the same purchasing power. That is 37% more due to higher cost of living.

Salary Comparison by Job Title

Estimated mid-level annual salaries in local currency, adjusted for each city's cost of living:

Job Title Manila (PHP) Panama City (USD)
Doctor (General) ₱2,706,235 $76,140
Software Engineer ₱1,277,944 $35,955
Product Manager ₱1,503,464 $42,300
Lawyer ₱1,503,464 $42,300
Data Scientist ₱1,428,291 $40,185
Marketing Manager ₱1,082,494 $30,456
Teacher ₱721,663 $20,304
Nurse ₱872,009 $24,534

Salary estimates are adjusted by each city's COLI relative to the New York baseline. Actual salaries vary by company, experience, and industry.

Neighborhoods

Manila (Top 5)

NeighborhoodMultiplier
Makati (CBD)1.28x (+28%)
BGC (Taguig)1.25x (+25%)
Rockwell1.22x (+22%)
Alabang1.10x (+10%)
Ortigas1.08x (+8%)

Panama City (Top 5)

NeighborhoodMultiplier
Punta Pacífica1.30x (+30%)
Costa del Este1.25x (+25%)
Marbella1.15x (+15%)
Casco Viejo1.12x (+12%)
Obarrio1.10x (+10%)

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Frequently Asked Questions

Is Manila or Panama City more expensive?

Panama City is more expensive overall. Manila has a COLI of 26.8 while Panama City has a COLI of 42.3, making Manila approximately 37% cheaper.

What salary in Panama City equals ₱4,207,455 in Manila?

To maintain the same standard of living as ₱4,207,455 in Manila, you would need approximately $118,377 in Panama City.

Is rent cheaper in Manila or Panama City?

Average one-bedroom rent in Manila is $500/month compared to $1,000/month in Panama City. Manila has lower rent by approximately 50%.

Which city has lower taxes, Manila or Panama City?

Panama City has lower total deductions (19.5%) compared to Manila (21.4%), meaning you keep more of your gross salary in Panama City.

Explore Each City

Data Sources & Methodology

Cost of living indices (COLI) are benchmarked to New York City = 100 and derived from Numbeo and Expatistan crowd-sourced price surveys, cross-referenced with national statistics agencies. Rent data from Numbeo Property Prices.

Salary ranges are compiled from the U.S. Bureau of Labor Statistics (OES), Glassdoor, and PayScale. Tax rates are approximate effective rates for mid-range earners based on OECD Taxing Wages and national tax authorities. Exchange rates from the European Central Bank. Neighborhood multipliers are estimated from local rental indices and property data.

Last updated: 2026-02-28. Data is refreshed periodically. All figures are estimates for informational purposes only.