Do Australians need to tip for good service?

THE question of whether and how much to tip is always a tricky one.

In Australia the minimum wage is $18.93 an hour – almost double the dismal US rate.

Guaranteed a basic wage of just $US7.25 ($10.23) an hour, American hospitality staff need tips to earn a living, says Dr Lauren Rosewarne, a senior lecturer in the School of Social and Political Sciences at the University of Melbourne.

“Australia has a far better minimum wage than the US, and patrons shouldn’t feel the same burden of making up the difference in hourly rates through tipping,” she said.

Thanks to globalisation and the increasing movement of people, Australians are more exposed to tipping, with jars commonly occupying counters in cafes and restaurants.

However, Australia had no expectations around tipping, Dr Rosewarne said. “I’m neutral about tip jars, to a point, he said. “When there are two jars, for example, with one labelled Friends and the other Seinfeld, suggesting we tip to show our choice … this is one too many decisions for my day, and I’ll be turned off.”

She said deliberate tipping had its place. “If service is excellent – when someone goes beyond the call of duty – we should absolutely feel encouraged to reward service. A 10-20 per cent tip would seem appropriate in such situations.

“Hospitality workers, even when paid fairly, aren’t raking in a fortune, and thus patrons should be encouraged to recognise excellence.”

Dr Angela Knox, an associate professor of human resource management and industrial relations at the University of Sydney Business School, said people should not worry that tipping would push Australian wages down, like in the US.

Australian wages were set by the award system and enterprise bargaining agreements, Dr Knox said. She said tipping was “important for the workers in the hospitality industry, because they are among the lowest-paid workers in the country”.

Tipping let the sector maintain a higher quality workforce, Dr Knox said. A fine dining restaurant worker could earn up to $200 a shift in tips, while a corner cafe worker could gain $30 or $40 a week on top of the basic wage, she said.

“When you are the lowestpaid workers, everything helps,” she said.

Without tipping, Dr Knox said, much high-quality labour would vanish, so patrons should stump up extra for great service. Never feel pressured into tipping in Australia. Remember that Australia has a good minimum wage. Do tip when the service is excellent. Aim at between 10 and 20 per cent of the bill.