How much money do you need to earn to be in the one per cent around the world?

Bethan McKernan@mck_beth
Thursday 04 June 2015 13:10
news

So, how much money really puts you in the top one per cent of a country's earners?

Turns out it varies a lot depending on where you live - and the figure may not be as much as you think.

Economist Branko Milanovic, a professor at the City University of New York, figured out the average earnings you need to take home to be in the top percentile, after the figures are adjusted for taxes and the cost of living for the country you live in.

In the UK, the average yearly salary of a one per center is just £76,971 – so you don’t need millions to be counted as one of the richest people in the country.

Of course that figure doesn't include property, interest earned from investments, or selling stocks and bonds - and Five Thirty Eight believes 36 per cent of the super rich's income comes from that capital, rather than wages.

People who make around £77,000 after tax include pilots, and directors in sectors like marketing and IT. They're not necessarily the CEOs and bankers on Wall Street the Occupy movement sprang up to challenge.

The richest person in the world is Bill Gates, who is worth £56.6 billion. He earned just under £1 billion last year just from selling some of his Microsoft shares, 13,000 times as much as an airline pilot in the UK. But they'd still sit in the same top one per cent category.

In Russia you 'only' need £30,120 a year to be in the same economic set as President Vladimir Putin.

It is the super-wealthy 0.1 per cent that Oxfam says we should be keeping our eye on.

The charity found that the richest 85 people on the planet own as much as the poorest 3.5billion people in the world. This tiny elite would fit comfortable on a double decker bus - not that they have probably ever taken one.

Source: Luxembourg Income Study

More: Three highly depressing charts on the extent of global wealth inequality

More: [World's richest one per cent will soon own same as poorest 99 per cent]8

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