To tip or not to tip
For service workers living on minimum wage, tipping is a welcome gesture that could spell the difference between making ends meet and falling into debt days before payday. Far from being mandatory in the country, handing out tips has become common in some establishments or circumstances.
Tourists regularly practice tipping in areas they frequent, such as hotels, restaurants, and casinos, and when they use services like transportation and health and wellness, among others. Filipinos are generally not expected to give tips, but they have adapted the practice from Western culture, which has become more widespread, especially in commercial and urban areas.
“In the US, tipping is mandatory. In Europe, some establishments have started to regard tips as mandatory. Here, it’s given out of consideration for a job well done,” shared Cristina Santiago, the restaurateur behind Carmelo’s Steakhouse. She suggests adopting the foreign practice of tipping “because our servers work so hard for their families. More than that, it’s to show that they are part of the business success; they should be able to get a portion of whatever amount the business earns for itself.”
Tipping Pinoy-style
While there are no hard and fast rules, Filipinos give tips to show appreciation for service well done, or products received beyond one’s expectations. Filipinos tip waiters, servers, taxi drivers, hotel and housekeeping staff, personal care technicians (barbers, hair stylists, masseuses), and even personal trainers or dance instructors.
“I give tips when I have extra money. I usually leave tips for the restaurant service crew, our neighborhood barber, and sometimes for a kind cab driver. I don’t see it as a requirement but as a form of gratitude for the great service. Of course, I wouldn’t feel obligated to leave a tip if I get served a soup with a fly,” said Mark Go, a long-time travel writer.
From her experience, Santiago said, “Since it’s not mandatory, it acts like a motivator. Servers and waiters perform better because of the expectation of receiving a monetary reward for a job well done. On the guest side, it serves as a ‘quid pro quo’, you get what you deserve. But some guests are difficult to please, which is a disadvantage to our servers because their extra money is at the mercy of the customers.”
For Jing Ordoñia, a travel writer and tour guide, tipping is a personal choice. Whether to tip big or small relies on the type and cost of products and services, and the number of years of good service. He also observed that just like him habitual tippers usually prepare loose change or bills in small denominations to be handed discreetly; slipped in a cash envelope, or dropped in a tip jar.
For public transport, Ordoñia feels “there is no need to give tips, in general. For taxi rides, I round off the bill since I don’t use my senior card. The same applies to delivery service and park attendants.”
Inside establishments “a 100 pesos may be sufficient for a bellboy and staff in a 2- or 3-star hotel, higher in a 4- or 5-star hotel. Sometimes I give a bigger tip if I am there for business,” he added.
Ordoñia's tips are based on 10 to 20 percent of his food bill, but if there is a service charge, he leaves no tips, "unless the service is extraordinary.”
Tips for equal sharing
Mc Wilson Corporation President and CEO Reagan Tan said that customers in his restaurants (Tatatito, Gringo, Honeybon, Tokyo Bubble Tea, and Kaokee) don’t feel obligated or pressured to give tips. “This makes them more appreciative which often results to giving generous tips. When there are no tips, it is not frowned upon since they know that good service is their duty and part of the day’s work.”
Tips or no tips, Tan believes that “Filipinos are hospitality-oriented people; we give our best service whether or not customers leave a tip. A good service rendered always fetches a good tip. A returning customer will always leave a good tip for a reliable service and consistently good experience.” In some cases, tips are pooled together by the management and distributed among the service staff at the end of each month.
In their establishments, Tan shared that they practice pooling the tips to ensure that both the dining and kitchen staff get their fair share. He also finds this procedure prevents management or staff from tip pocketing, or keeping the tips to themselves.
“The management and distribution of tips is discussed among the staff. The common practice is to divide it equally. Some ‘outliers’ though push tips to be personalized. Servers get what is inside the bill jackets. A percentage is given to the non-servers, though,” shared Raymund Magdaluyo of the Red Crab Group and the SumoSam Group of Restaurants.
Service charge as tips
Some restaurants and service establishments automatically include a five to ten percent service charge on their bills based on their discretion. Its distribution, however, is regulated by law.
The Republic Act 11360 or the Service Charge Law was enacted on August 7, 2019, and defines service charge as “the amount added to the bill for work or service rendered when one dines in a restaurant or checks out of a hotel.” This law also provides for the full and equal distribution of the service charge among workers of hotels, restaurants, and other establishments. However, managers and supervisors are not entitled to service charges.
The revised Implementing Rules and Regulations (IRR) contained in the Labor Department Order 242, issued on February 1, 2024, specify the full and equal payment of service charges to all covered employees of service charge-collecting establishments, improving the distribution of tips to include those not directly hired by employers such as contractual, non-regular or agency workers.
In Carmelo’s, “tips and service charges are shared equally by everyone, regardless of ranking. We are a team and as the saying goes ‘the success of one is the success of all’ and with that, everyone shares the blessings,” said Santiago. “Service charge somewhat works like a tip. It’s an extra amount they receive on top of their salaries which I feel they are also entitled to.”
Whatever the case, it is up to customers to tip, pay the bill with a service charge, or pay the bill and tip out of generosity, gratitude, and loyalty, and show sincere appreciation for the service workers’ hard work.
