Is it a tip or a service charge? Not the same thing!

By: Trademagazin Date: 2024. 07. 12. 10:40

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There is often great uncertainty as to whether the service fee applied almost everywhere today is the same as the concept of a tip, and if it is charged, whether it is necessary or appropriate to give an additional tip. There are many differences between the payment methods, including the method of taxation and the voluntary nature. The national competition authority recommends that consumers think through who they want to reward with their tip and decide accordingly.

It is increasingly common to encounter service charges on restaurant menus. The consumer may have many questions regarding the extra item. Is it equivalent to a tip? Do you have to pay? If the service fee has already been charged, is it necessary to tip?

The service fee, or less commonly known as the service fee, is a type of income defined by law for the catering establishment, which can only be used for the wages of the employees. This extra fee is not only due to the given server, but all people working there benefit from it to a predetermined extent. The amount of the service fee can be freely determined by the catering establishment, but it must be indicated on the menu and on other information surfaces. Payment of the service fee is not optional, the consumer must pay it. The advantage is that, due to its reduced taxation, it can greatly contribute to the fair wages of employees.

The tip, on the other hand, is a voluntary allowance, the amount of which is determined by the consumer. In this way, the guest can express his appreciation and thanks for the work of the server. However, the manner in which the tip is paid is very important, as this affects its taxation and may even lead to the server not benefiting from it.