Irish managers have less spending power than their peers in almost every other developed economy, according to a new survey.

Average incomes for senior managers are lower than in the United States, Britain and Germany, and higher taxes combined with rising living costs further diminishes their purchasing power, the study by Mercer consulting finds.

High tax rates in Europe meant European managers are under- represented in the top 20; although respondents in Chile, Uruguay and Ecuador earned much less, because of lower taxes and cost of living meant their spending power was actually higher.

Hong Kong topped the survey, with managers' average salaries of $115,375 (€102,1146) translating to a 6.92 purchasing power rating. Switzerland was next with an average pay of $146,520 and a 6.71 rating.

Ireland finished in 20th position with annual salaries of $73,515 and a 4.3 ratings - below Uruguay and Venezuela and only one place ahead of conflict-ravaged Colombia.

Vietnam finished bottom in the survey of 50 states, with managers' salaries averaging $22,790 and a purchasing rate of just 1.00.

The United States ranked fifth with aggregate $105,254 salaries earning a 5.52 rating. Britain came 11th ($93,095/4.76).

Despite its spluttering economy, Germany finished fourth ($103,820/5.87) in the index.

Belgium, Italy and Denmark rated relatively poorly finishing in 23rd, 29th and 31st position.

Mr Brian Duncan, of Mercer's Human Capital Practice, said: "Senior managers' salaries in Ireland are generally comparable to the higher ranking countries.

However, the higher cost of living and taxation reduces executives' purchasing power parity relative to those higher ranking countries.

"Senior managers in the European Union may earn some of the highest salaries in the world, but they also pay much higher taxes and social charges than those in many developing countries," he added.

"Senior managers" are defined as department heads in large companies, function heads in smaller companies and upper level professionals.