The economic and social consequences of remittances are attracting greater attention from scholars and policymakers. This study investigates how international remittances affect income inequality in a highly out‐migration and remittance‐dependent country, the Philippines. This study shows that the inequality‐remittances nexus is inverse U‐shaped, suggesting that remittances have an income‐equalising effect only after a threshold level, validating the existence of a remittance Kuznets Curve. The findings are robust to various measures of income inequality. Also, Lind and Mehlum's (2010) test of an inverse U‐pattern between inequality and remittances verifies this non‐linearity.