How much money do you need to make before being classed as one of South Africa’s elite? Or better yet, how high should you be aiming? And how does the average salary compare to the country’s wealthiest 1%?
These being the questions asked by international real estate and investment immigration firm Astons, who revealed in its research titled, World Inequality Database, a range of informative insights.
In this database, the international group looked at 28 major nations, alongside the top 1% pre-tax income threshold, as well as how this differed in comparison to the average national income in each country.
According to Astons’ research, the most esteemed place to rank within the top 1% of earners is none other than the Middle East.
The research shows Qatar is home to the highest requirement, this involves required pre-tax earnings of a resounding R25.3 million a year, in order to break into the top 1%.
Also ranking among some of the nations with the highest wage requirements to enter the top 1% is The United Arab Emirates with R14.65 million per year, seeing Saudi Arabia coming in with R10.1 million and Bahrain with R6.6 million.
While the US is often mocked for an array of reasons, it also ranks within the top with a pay package of R7 million required before tax to be classed within the top 1%.
While looking at top earners, Qatar and the UAE are home to the most significant reality gaps between the top 1% and the average citizen.
Astons research shows there is a 1321% difference between the average national wage income in Qatar—with the UAE, this gap is 1108%.
Coming in at third place in regards to the reality gap between the top 1% and the average citizen is South Africa. Whereby the study reveals, the gap between the two is a 929% difference.
To be among the richest in South Africa, you will need to earn R2.54 million a year, before tax. The county with the smallest gap is the loveable Netherlands. In this country, the top 1% has an income threshold of R3.4 million, which stands at 291% higher than the average national income of R877,000 a year—Not too shabby!
Managing Director of Astons, Arthur Sarkisian, analysing world nations based on the earning requirement of the top 1%, shines a light on just where the most global wealth has been accumulated. In this respect, he says it’s clear that the Middle East has become the world leader.
He highlights that countries such as the Netherlands, China and Australia provide a more balanced society in this respect with a smaller void between the top earners and the average income available.
With the above in mind, are you more of the 1% or an average Jane or Joe?
Share your thoughts with us in the comment section below.
Author: Quinton Boucher
Edited: Calvin Swemmer
