The most recent hike in Spain's minimum wage was announced last week, taking it to 1,221 euros per month - an increase of 66 per cent since Pedro Sánchez took power in 2018. Analysts say that this escalation has made a big difference to the bottom end of the labour market, especially as over two million people are now on the minimum wage, compared to less than 200,000 eight years ago.

But unless these hikes are accompanied by greater scrutiny of workplace practices, especially in the hospitality sector, they won't realise their full economic potential. Employers who see their workers as dispensable drones rather than valuable assets are the biggest problem. Here's one example from personal experience, but I suspect it's representative of the overall situation in Spain, and especially in the tourist haven of Andalucía.

A friend of mine recently decided not to take a job at a local restaurant after completing his prueba, or trial period, as a waiter (staff are often fired after the prueba, so employers can avoid signing temporary employment contracts). The salary had initially seemed quite attractive, he said, but there was a nasty catch: you were only paid for 40 hours per week, regardless of how many more you worked.

The waiters at this restaurant, he told me, routinely worked 50- or 60-hour weeks, often more during peak periods. Let's assume they're on the minimum wage, although of course they're being underpaid regardless of how much they earn. A few quick calculations reveal the extent to which these workers - and surely thousands like them across Andalucía - are being exploited.

The waiters at this restaurant, he told me, routinely worked 50- or 60-hour weeks, often more during peak periods. Let's assume they're on the minimum wage, although of course they're being underpaid regardless of how much they earn. A few quick calculations reveal the extent to which these workers - and surely thousands like them across Andalucía - are being exploited.

With a 40-hour working week, Spain's new minimum wage equates to 7.63 euros per hour. That drops to an hourly wage of 6.10 euros and five euros for a 50- and 60-hour week, respectively. So the staff at this restaurant, despite being paid appropriately on paper, are actually earning at least 20 per cent below the minimum wage. Spain's labour minister Yolanda Díaz has promised to crack down on such practices - a formidable task, given their ubiquity within the catering business.

Exploitation is rife in the Spanish hospitality industry. Spain's biggest labour unions, the CCOO and UGT, have frequently spoken out against bars, hotels and restaurants failing to give employees a minimum of 12 hours' rest between shifts and at least 36 consecutive hours (i.e. 1.5 days) off per week, both of which are stipulated by Spanish labour law. In 2023, the CCOO said that exploitation in the Balearic Islands, a major tourist hotspot, had reached a "chronic" level.

The owner of the restaurant that I've used as a case study can't be struggling for cash: he had his terrace completely revamped last summer. Perhaps it was paid for with the money he's saved on employees' overtime. Hopefully Díaz calls in for lunch sometime soon.