It pays to work in Dublin

London may pay its financial services employees almost 38% more, but once rent and bills are paid Irish workers may be better off at the end of the month. And it's all down to tax.

A new survey by UBS investment bank shows that workers in Dublin have the third highest purchasing power in the world. The Irish Times reports that after paying for essential goods and services, Dubliners are able to buy more with their net hourly wages than Londoners, and have more left over to squander on holidays, luxury goods, or even savings.

This news comes despite the fact that Irish living doesn't come cheap.

When the cost of renting an apartment is included, London and New York are the most expensive cities to live in by a wide margin, while Dublin takes eighth place if rent is included. However, Dublin was found to be the ninth most expensive European city for the foodstuffs surveyed, with the Irish capital more expensive for food than London.

A study by the Blomfield Group showed that the average salary in Dublin was €39,302, compared to €54, 096 in London.

However, Ireland's purchasing power may be down to its "relatively low payroll taxes". Dublin is described as a "relative tax haven in Europe" in terms of payroll deductions.

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