Zurich and Dublin are on top of the world

The highest gross wages are paid in Scandinavia. However, once taxes and social security are accounted for, it is workers in Zurich and Dublin who retain the greatest share of their wages, according to a survey released by UBS at the end of March.

Entitled Prices and Earnings, a comparison of purchasing power around the globe, the survey found that Jakarta has the lowest average wages, followed by Delhi, Manila and Mumbai.

Jakarta's workers are paid about 95 per cent less than those in the top-five European cities, according to the survey. Out of 71 cities surveyed, Hong Kong came in at 43 for gross wages, just behind Istanbul. London ranks at 10, New York at 13 and Singapore at 37.

The survey also found that when it came to tourism, Oslo, London and Copenhagen were the most expensive cities to visit. In 2005, Dublin was the 13th most expensive city surveyed and it is now ranked number four, just ahead of Zurich.

But if rent is taken into account, London is the most expensive city to live in, followed by Oslo, Dublin, Copenhagen and New York. Life for London tenants is 23 per cent more expensive than it is for those in Zurich. Other cities notorious for their high prices have ceded their places. In the United States, prices have dropped compared with the other cities. This is because of the US dollar's sharp depreciation.

UBS said that in comparison to the last survey in 2006, the dollar dropped almost 18 per cent against the euro.

As a result, New York is now a more affordable place for Europeans to visit, while London is 26 per cent more expensive than last year.

The report notes: 'While eurozone cities are even more expensive, in 2006, Barcelona and Hong Kong were similarly costly.' In fact, Hong Kong is 18 per cent cheaper than Barcelona, this is because inflation and a strong euro have driven prices higher.

South Africa and Indonesia are the more attractive tourist destinations, according to the survey as their currencies have depreciated. But Shanghai and Beijing remain comparatively inexpensive, despite the mainland's economic boom and rising inflation.

There are still more affordable places to live. According to the survey, 'the cheapest cities are in South Asia and South America. Buenos Aires is nearly as expensive as Mumbai'.