If you earn ₹25,000 or more in India, then your pay comes under the top 10% of the total wages earned in the country. The income disparity all over the world is off the charts, the top 1% earners comprise a very small portion of the population but earn the most. So, how much do you need to earn to be in the top 1% of India and abroad? Let’s find out with the help of Bloomberg’s report.
1. UAE | ₹1.9 Crores
To join the elite 1% group in the UAE, you need an annual pretax income of $922,000 or ₹1,93,14,978. It is 12 times more income than in India. UAE also doesn’t have any income tax.
2. Singapore | ₹1.5 Crores
If you are in Singapore, you need to earn an annual pretax income of around $722,000 or ₹1,51,25,178. The top marginal tax rate in 2018 in Singapore was a bit over 20%, still less than most of the countries on this list. Singapore is the most expensive country to live in on this list, with a cost of living of $2169 per month.
3. United States | ₹1 Crore
The income required to be in the top 1% in the United States is around $488,000 or ₹1,02,23,112. The US is also one of the most expensive countries to live in with a cost of living of about $1951 per month.
4. Bahrain | ₹1 Crore
You need to earn around $485,000 or ₹1,01,60,265 annually to be in the top 1% of Bahrain. Just like UAE, Bahrain also doesn’t have any personal tax for its citizens. There are no taxes on sales, capital gains, or estates either.
5. Germany | ₹58 Lakhs
In 2021, Germany was ranked the 20th richest country in the world wrt GDP per capita. To be in the top 1% of the country, you need to earn around $277,000 or ₹58,02,873.
6. United Kingdom | ₹51 Lakhs
If you want to be in the top 1% of the UK, you need to earn an annual pretax income of $248,000 or ₹51,95,352. The UK is among the countries with the highest marginal tax rate and is rated as the most expensive country to live in in 2023.
7. Australia | ₹51 Lakhs
Australia ranks 21st in the richest countries in the world list. To be in the top 1% in Australia, you need to earn around $246,000 or ₹51,53,454.
8. Canada | ₹42 Lakhs
Canada ranks 24th on the richest countries in the world list. An annual pretax income of $201,000 or ₹42,10,749 will put you in the top 1% of the country.
9. China | ₹22 Lakhs
To be in the top 1% of China, you need to have an annual pretax income of $107,000 or ₹22,41,543. The increase in wealth in China has prompted a boom in spending on luxury goods like accessories, jewellery, watches, etc.
10. India | ₹16 Lakhs
Compared to other entries in this list, it seems like it’s fairly ‘easy’ to be in the top 1% in India as you just need to earn around $77,000 or ₹16,13,073 pretax income annually, the lowest throughout this list. Of course, there’s a reason it’s the top 1% in the country.
Note: Figures are for the most recent year available and are given in 2018 US Dollars adjusted for Purchasing Power Parity (PPP). The numbers are then converted into INR using the PPP exchange rate, which means the rate at which the currency of one country would have to be converted into that of another country to buy the same amount of goods and services in each country.