A common practice at restaurants and bars, the service charge has become known as the “waiter's 10%” — and it still raises plenty of questions.
Is the customer required to pay it? Does it really go to the waiter? How is it calculated? What does the Tip Law say? What are the establishment's obligations? How should it be divided correctly?
If you're looking for answers to these questions, keep reading and learn everything about the topic!
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Is the waiter's 10% mandatory?
The “waiter's 10%,” or simply “the 10%,” is a common way of referring to the service charge billed by restaurants and bars.
It's usually the percentage applied to the total amount consumed, and it's normally added directly to the customer's bill to make the math easier. But this practice can raise questions.
Customers may be caught off guard by the final bill and wonder whether they're required to pay the waiter's 10%.
Although the service charge is recognized under the Tip Law, it isn't mandatory. O cliente tem liberdade para decidir pagar ou não — e não pode ser constrangido caso opte por não pagar.
But what exactly is the service charge, and why is it charged? Find out more below!
What is the service charge?
The service charge is an additional amount charged by restaurants and bars for the service provided. It's meant for waiters, servers, and in some cases, other staff members as well, such as cashiers and cooks.
It's usually calculated as a percentage of the total bill. The most common rate is 10%, but some places charge 13%, or even 15%.
However, as we mentioned earlier, the customer isn't required to pay this charge. If they prefer, they can pay a lower or higher amount — in the latter case, the extra amount is known as a top-up (repique). Customers can also leave a tip directly to the waiter.
The service charge is a way of compensating waiters and servers for their work. In many cases, these tips represent a significant share of the income of these workers. That's why the law sets out certain rules that establishments must follow.
Leia também: Can a Restaurant Charge a Food Waste Fee?
What does the Tip Law say?
A Law No. 13.419, of March 13, 2017, better known as the Tip Law, establishes that the service charge must be distributed among staff members following criteria set out in a collective bargaining convention or agreement. Here are the main points of the law:
There's no set percentage
There's no minimum or maximum percentage set for the service charge. Establishments can suggest whatever rate they'd like.
Customers must be informed
The establishment is required to inform customers in advance of the service charge percentage, so they can decide whether or not to pay it.
Tips become part of the wage
The tip amount becomes part of the waiter's wage. This means employers must record, in each employee's official work record (Carteira de Trabalho e Previdência Social), the fixed salary along with the average tip amounts from the last twelve months.
Part of the amount may be used to cover payroll costs
The establishment may withhold part of the amount collected (up to 20% or 33%, depending on its tax regime) to cover the social security, pension, and labor costs associated with paying out tips.
Customers can tip the waiter directly
Customers are allowed to tip the waiter who served them directly. In this case, withholding and distributing that amount is optional for the establishment. The criteria must be set out in a collective bargaining convention or agreement.
Fines for non-compliance
If an establishment fails to properly distribute tips, it must pay the affected employee a fine equal to 1/30 of the average tip amount for each day of delay, capped at the category's minimum wage. In case of repeat violations, that cap is tripled.
Leia também: Is a Cover Charge Mandatory? Here's What the Law Says
How to calculate the waiter's 10%
The waiter's 10% is applied to the final amount of the bill or individual tab. So you first need to calculate the 10%:
Service charge = Bill amount * 10 / 100
Then add the service charge to the bill amount:
Total amount = Bill amount + service charge
For example:
Let's say the final bill comes to R$ 80 and the service charge is 10%
Service charge = 80 * 10/100
Service charge = R$ 8
Total amount = 80 + 8
Total amount = 88
The service charge can be added directly to the customer's bill, as long as it's clearly indicated.
Although the service charge represents a small part of the bill and has become standard practice, it's worth stressing: customers are not required to pay it. Abusive charging practices can lead to legal trouble and damage the establishment's reputation.
Leia também: Night Shift Pay at Restaurants: Learn How to Calculate It
How to encourage customers to leave a tip
Offering excellent service is the best way to encourage customers to pay the 10%. After all, when waiters provide quick, personalized service, they earn customers' trust and get recognized for it.
At payment time, some customers aren't sure whether the money really goes to the waiters or servers. To avoid any distrust, be transparent! Train your staff to inform customers about the charge and explain how it works.
Lastly, technology can also help increase tips. Establishments that use EPOC GO, for example, saw a 12% increase in tips through top-ups.
That's because, in addition to being a digital menu, this solution also lets customers pay easily and quickly right from their own phone. Ele não pega filas e pode incluir o valor extra que desejar.
If you'd like to learn more about EPOC GO and bring this benefit to your restaurant, Schedule a free demo!
