90% service fee share for workers on 2nd reading

THE HOUSE of Representatives approved on second reading the bill increasing the service charge benefits of rank-and-file employees in the hospitality industry.

House Bill No. 8784, which amends Article 96 of the Labor Code of the Philippines, proposes to increase the share of employees to 90% of the collected service charge from the current 85%.

The remaining 10% will be allocated to the management to cover pilferage and breakage, among others.

The House version is lower than the 100% share proposed in Senate Bill No. 1299, which seeks to distribute the service charge collection “completely and equally” to workers.

The House bill also provides that such benefit will cover “regular rank-and-file and supervisory employees,” while its Senate counterpart excludes employees with managerial posts.

The Senate version was approved on third reading in Dec. 2017 and has since been transmitted to the House. —