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Spain's minimum wage will jump by 22% in 2019 - the largest annual increase in more than 40 years.
It means millions of low-paid workers could see a pay rise from €736 ($835; £665) to €900, effective from January.
Prime Minister Pedro Sánchez announced the increase on Wednesday, declaring "a rich country cannot have poor workers".
The announcement comes two days after France's president Emmanuel Macron announced a €100 increase for minimum wage earners from 2019.