Tips and Service Charges


Tipping is not customary in Korean culture, and tipping is not expected in the general service industry. Some people even regard tipping as an inappropriate behavior. High-end hotels and restaurants often include a service charge of between 10% to 15%, but it is always included in the bill and customers are not expected to leave an additional gratuity for servers. This is particularly important to note in settings like banquet halls where each of a server’s tables will have automatic gratuity added to their bill.

Below is a line-by-line look at policies for automatic gratuity charges (called service charges or “crew appreciation” charges at some lines). At many big lines, such as Royal Caribbean and Norwegian Cruise Line, it’s not uncommon for a family of four staying in a single cabin to see around $80 a day in service fees added to their bills. On a typical seven-night cruise, that’s nearly $600 in fees. And that’s before you add in any additional tips you wish to give to your room service or favorite bartender or autogratuities tacked on to bar, restaurant and spa bills. The extra cost of the automatic gratuity charges can be a shock to first-time cruisers. And, unlike the typical service fee or resort fee found at a land resort, they are not per room. The minimum wage in Australia is reviewed yearly, and as of 2017 it was set at A$17.70 per hour (A$22.125 for casual employees) and this is fairly standard across all types of venues.

Travellers following home rather than local customs

Most Should you leave a tip for the waiters if the service charge is added to the restaurant invoice already? include a non-obligatory service charge on the bill, which under standard practice is 10% (so much so that “10%” is used in Brazilian Portuguese as a synonym for “tip”). There is no legal obligation to pay, however it is really expected by the staff, and declining to pay it can cause distress and confusion, since it is considered part of the salary. Currently, due to tax law changes, restaurants some times charge 12%, while expensive restaurants can charge up to 15% . However, paying less than 10% would be seen as a complaint. The Fair Labor Standards Act defines tippable employees as individuals who customarily and regularly receive tips of $30 or more per month.

  • Over half of those who received a share of the tips said they felt the system was unfair and that they should be allowed to keep the tips they collected.
  • They say the money is shared not just with “front of house” crew, such as room attendants and waitstaff, but also with behind-the-scenes workers.
  • Extremist believe it is a plot to underpay workers, despite the fact that tipped employees are some of the highest paid employees in the restaurant industry.
  • The latter usually happens only in the larger store chains.

The resulting financial pressure caused proprietors to welcome tips, as a way of supplementing employee wages. Contrary to popular belief, tipping did not arise because of servers’ low wages, because the occupation of waiter was fairly well paid in the era when tipping became institutionalized. While automatic gratuity can be helpful for ensuring adequate compensation after serving large parties, it can also bring about some challenges when it comes to your restaurant’s bookkeeping. If you want to implement an auto gratuity policy in your establishment, be sure to familiarize yourself with the legislation regarding it in your state.

Tipping in European Restaurants

Before 2018, a tip pool could not be allocated to employers, or to employees who do not customarily and regularly receive tips. These non-eligible employees included dishwashers, cooks, chefs, and janitors. In March 2018 an amendment was added to the Fair Labor Standards Act that allowed restaurants in a majority of states to split the split tips between front and back of house workers.

service provider

Tipping is sometimes given as an example of the principal–agent problem in economics. One example is a restaurant owner who engages servers to act as agents on his behalf.

Tipping Hotel Porters in Europe

Depending on the, laws may exist regarding tip amounts and services for which tipping is expected. In general, though, tips are always appreciated as they demonstrate gratitude and appreciation for services rendered.


Which is why there is no custom of tipping them and when we do it, we don’t feel obliged to leave a set %. It’s more of a way of letting a waiter know he’s done an exceptional job. Many small restaurants and cafes, even in tourist areas, may only accept cash and not credit or debit cards in their establishments. If this is a concern, be sure to ask before you’re seated. Serviço is not included (sometimes found in upscale or tourist area establishments – check your bill first), a 5% – 10% tip is appreciated, with 10% left for exceptional service. – Tip 1-2 Euros if the concierge provides information such as suggestions for restaurants, shopping, or visitor attractions.

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A tip is considered something extra, not the service charge which is nearly always added into your bill or automatically included. Waiters in Paris are smart enough to know that a tip is not the same as service, which frankly is why some of them try extra hard to please Americans. If the service is not included, you will see the mention Service non compris. Some people add up to 10% to that, but I wonder if they would do the same thing in an American restaurant which automatically adds a service charge of 15 to 18% for parties of 6 or more. As already mentioned above, service staff in bars and restaurants will accept small tips, unless this has already been added to your bill, and these will be well received but are certainly not expected. Waiters usually get at least minimum wage, and this is considerably higher than it is in the US and many other parts of the world.

Specific rules depend on where the restaurant is

Some cruise lines charge their patrons US$10 per day in mandatory tipping; this does not include extra gratuities for alcoholic beverages. At most restaurants, the standard practice is to simply round off the amount on the bill.

  • At the same time, the opportunity for revenue has gone down because of limited capacity restrictions.
  • The service charge can typically be split between the service staff member or service provider and then allocated to direct wages.
  • As we strive to provide site experiences for browsers that support new web standards and security practices.
  • PANE – This means bread in Italian and it’s usually included in the coperto.

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