Workers in Dublin have third highest purchasing power

Workers in Dublin have the third highest purchasing power in the world, with only workers in the Swiss cities of Zurich and Geneva able to buy more with their net hourly wages, according to a new study by investment bank UBS.

After buying a basic basket of goods and services, Dublin workers retained the third highest proportion of their wages for discretionary items like holidays, luxury goods or savings.

Dublin workers must work for 15 minutes in order to earn enough money to buy a Big Mac, 20 minutes less than the global average of 35 minutes.

Tokyo topped the so-called "Big Mac index", with workers earning enough to purchase a Big Mac after just 10 minutes. But workers in the Colombian capital of Bogota must work for 97 minutes before they can buy the burger.

However, because Irish workers have shorter working hours than people in US cities such as Los Angeles, Chicago and New York, workers in those cities have higher purchasing power when annual net incomes are considered.

The study of purchasing power, prices and earnings was conducted earlier this year in 71 cities worldwide.

Dublin was found to be the eighth most expensive city for a basket of 95 goods and 27 services estimated to reflect average consumption patterns. The study does not include the cost of buying property. Oslo, London and Copenhagen were the three most expensive cities.

Zurich, Tokyo, Geneva and New York were also found to be more expensive than Dublin, with Stockholm and Helsinki making up the rest of the top 10.

But if the cost of renting an apartment is included, London and New York are the most expensive cities to live in by a wide margin.

UBS said it was little wonder that Londoners and New Yorkers often tolerate "extreme commutes" in order to find affordable housing. Dublin remained in eighth place if rent is included. Dublin workers earn the eighth highest gross wages, but the fourth highest net wages.

Only workers in Zurich, Geneva and Oslo take home more money each month.

Although workers in western Europe are close behind North American workers when it comes to gross wages, European net earnings fall significantly below the disposable income levels enjoyed by Americans because of higher taxes and social security contributions.

However, Ireland's "relatively low payroll taxes" makes the Republic a "noteworthy exception" to this trend. Dublin and Madrid are described as "relative tax havens in Europe" in terms of payroll deductions.

The amount of working time required to buy a 1kg of bread ranged from just five minutes in London to 76 minutes in the Venezuelan city of Caracas, with Dublin workers having to work for seven minutes before they can afford a 1kg loaf.

Buying 1kg of rice requires an average of nine minutes' work in Dublin, compared to 36 minutes in Delhi, Istanbul and Jakarta.

Food prices across Europe still vary widely, with food costing twice as much in western Europe as it does in eastern Europe, UBS found.

In Dublin, the cost of the foodstuffs surveyed was found to be the ninth highest among European cities, with the Irish capital more expensive for food than London.

The study also confirms what Dubliners have long suspected - that eating out in the city is not exactly cheap. Diners can expect a "relatively steep" bill for a three-course meal, excluding drinks, in a good restaurant, paying an average of $53 (€41).

This makes the city the third most expensive in the world for eating out, with only diners in London and Oslo paying more on average for a starter, main course and dessert.

Dublin was the 11th most expensive city worldwide for a basket of services that included a haircut, dry cleaning, a telephone bill, a cinema ticket and an internet connection.