We are witnessing a slight rise in cash, but the Bank of Spain confirms the definitive trend of the transfer of the population towards electronic means of payment. At the end of 2022, 66% of purchases were made with cash compared to 83% before the pandemic (National Survey on the use of cash, Bank of Spain, 2022). Those over 65 and the 18-24 age group use it more, but the cards are marked. We don’t live in Sweden, which will go cashless before the end of the year, but we’re headed there. In the move, old habits (anachronistic?) have fallen by the wayside.
Where is, for example, that additional and voluntary gratuity that waiters, delivery men, street artists, hairdressers, bellboys and other personal services received? With this act, the services provided were appreciated, through a gift, which sometimes marked social distance and others, recognition; at the same time, and above all, it became a compensatory emolument for the low salaries of many of these professions; around 15% or 20% of the total income.
If we take into account that the average payroll in restaurants and services, even with the strong increases in the minimum wage of the socialist government, are among the lowest in Europe, it is understandable that this bag of money continues to flow without excessive control. Whether by distribution to the common fund, or by percentage among all employees, it still represents a good pinch added to the salary; Another thing is that this remuneration is neither controlled nor quoted for the pension.
There were times when there was talk of developing the personal income tax law of 2006. This legislation indicates that its amount must be registered, even if it does not accrue VAT. But now, at election time, logically no party takes the flag. In restaurants, it is estimated that the mass of black money that tips are handled could reach five billion, when before the euro it reached five times more and before the pandemic, double, about ten billion. It is true that pursuing these amounts would cost the Treasury more than the revenues to be obtained, while other more succulent fishing grounds appear in which profitability would be guaranteed.
There are countries, such as China and Japan, where giving a tip becomes an affront; and others, such as several North American states –Washington, Oregon or California, among them–, in which they are considering eradicating them. In France, the United Kingdom or Italy, the rate is between 5% and 15%, whatever the means of payment. The latest fashion, which has little success, is the emoticon in the note “would you like to pay a tip or notâ€.
Once the population has been given reasons to abandon this old custom, even in the digital era in which everything is disaggregated, it is very difficult to make them understand that you have to pay extra for something that is included in the bill.
