Service charge

No service charge on the restaurant bill will affect waiters, waiters and kitchen staff

  • Removal of service charge by default will affect earnings for waiters, waiters, kitchen staff, and cleaners.
  • The national average waiter salary is ₹16,400 per month in India, according to job review platform Glassdoor.
  • Depending on the rank of the employee, waiters earn between ₹5,000 and ₹20,000 from these service charges and tips, says Pradeep Shetty, senior manager of hotel and restaurant associations in India.

The Indian government’s decision to throw restaurant service charges out the window will ease restaurant bills. However, this is not good news for employees in an industry who live on tips to compensate for their low income.

Servers, waiters, kitchen staff and housekeepers will be directly impacted by the decision not to pay a 10% service charge.

“Service charges are charges levied for the benefit of staff which includes everyone from waiters to staff working in the kitchen who have served a consumer directly and indirectly,” Gurbaxish Singh Kohli, vice president of the Federation of Associations of hotels and restaurants. of India (FHRAI), said.

A service charge is an amount that is added to your bill in a restaurant to pay for the work of the person who comes to serve. A smaller percentage – 30% – of this amount may also be deducted in case of breakage by waiters in restaurants and hotels.

The average server salary is ₹16,400 per month

According to job review platform Glassdoor, the national average waiter salary is ₹16,400 per month in India. Salary estimates are based on 73 salaries submitted anonymously to Glassdoor by server employees. Data from other publications such as Jobted, Talent and Salary Expert are also in the same range, if not below.

BI India

Tips are an essential part of their wages

“Depending on the rank of the employee, he earns between ₹5,000 and ₹20,000 from these service charges and tips. It’s beyond their salary,” Pradeep Shetty, honorary co-secretary of FHRAI and senior vice president of the Hotel and Restaurant Association of Western India (HRAWI), told Business Insider India.

In other countries – like the US, UK, Canada and more – restaurant staff work for minimum wage, but tips make up a significant portion of their take home pay.

Now that the service charge is irrelevant, this will reduce the net income of people working at the ground level of the hospitality industry.

The only thing that would bring some relief to people working in the industry is if customers choose to pay the 10% service charge or get into the habit of tipping, as is the case in most Western countries.


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