Senator wants 100 percent of service tips go to workers
Senator Joel Villanueva filed a measure that mandates establishments to give 100 percent of their collected service charge and tips to their employees.
Under Senate Bill No. 1299 or “An Act Providing That 100% of the Service Charge Collected in Hotels and Other Establishments Be Distributed to All Covered Employees,” workers are entitled to 100 percent of the service charge paid by customers.
Currently, Article 96 of the Labor Code provides that employees are entitled to only 85 percent of the service charge paid by customers in hotels, restaurants and similar establishments while 15 percent goes to the management.
Villanueva said in a statement that a Technical Working Group was formed to further consult the stakeholders that will lead to the drafting of the committee report.
Villanueva said that service charge or tip is just a small portion of the total income of an establishment and it deserves to be given to the employees who are the ones actually providing service to its customers.
The senator said that the tip actually reflects the quality of service of workers and it serves as incentive to do their best.
Villanueva said considering that most of these workers are minimum wage earners, it is only fair to give the workers all of their hard-earned tips.
He said that giving 100 percent of service charge solely to employees is an additional contribution for the payment of their personal and family expenses, including food, rent, and electricity and water bills.
"We think this is just a rightful move on the part of the establishments that hire them for the quality service they give to their customers,” Villanueva further said.