THE ETIQUETTE OF THE COMPULSORY SERVICE CHARGE
The etiquette of the compulsory service charge - Luxury Travel Magazine
| By Alanna Bromley |
| Date: 6 September 2011 |
| One of the most confusing areas for travelling Australians is the etiquette surrounding tipping and service charges as this is not a widespread practice here. While some destinations are well known for their tipping customs, like the US with its 15 per cent rule of thumb, others like Bali, are less easily understood so let’s take the “service charge” in Bali as an example. Generally, you’ll see a compulsory 21 per cent service charge added to the bill at restaurants and hotels in Bali. While this might seem like a lot, half of it is actually goes to the staff and the other half is for government taxes (just like the GST in Australia). The charge is imposed by ministerial decree and is not optional, although it remains the choice of the hotel to either include this 21 per cent on the original price list for services or write in the fine print that the tax and service charge have been excluded and will be added separately. The vast majority of hotels follow this latter method and quote prices excluding the tax and service charge, which is why you will see it added on your bill. There are various ways of sharing the service charge among employees, but the Bali Hotels Association told Luxury Travel Magazine, the most common method is to share the total of the 10 per cent collected among the total number of employees, and either pay it separately or at the same time as their monthly salaries. In fact, a staff member can earn as much as four times the basic salary off this service charge alone, and is therefore a significant source of income for employees. The confusing part is really whether or not you are expected to tip on top of the service charge. Technically, you could argue, you have already tipped the staff 10 per cent, and an additional tip is not required even if the service was very good. Others will argue that as the 10 per cent service charge is a mandatory part of the bill it isn’t really a compliment to the staff on their good service. So, if you want to compliment the staff, you’ll need to add a tip on top of the service charge… and perhaps hand it to the individual staff members you wish to especially thank. At the end of the day, tipping on top of the service charge in Bali is left to the discretion of the guest. The practice is not expected and quite unusual but always welcomed. Rounding up taxi fares and tipping porters is always considered appropriate wherever you are. Seasoned travellers recommend tipping between five and 10 per cent of the total bill to restaurants and hotels when you’re particularly impressed with the service, wherever you are. When in Bali, it’s worth bearing in mind that for Balinese workers, the base salary is often not enough to live on, so any tips over and above the service charge are always appreciated. |