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Wednesday, March 6, 2024

Ele Ludemann: Tipping point


Tipping isn’t the norm in New Zealand but the introduction of EFTPOS machines that prompt customers to add 5, 10 or 15 percent to their bill might change that.

In some countries where wages are very low tips are expected.

One argument for that is it encourages, and rewards, better service, but if it’s added to an electronic payment does it go to the staff who serve you and wouldn’t it complicate GST returns and PAYE?

And what if the service isn’t good?

I read of a restaurant reviewer who always started with the expectation of tipping 10% and added or subtracted from that depending on how well wait staff performed. He said sometimes he finished a meal with the staff owing him.

We haven’t reached the tipping point where tipping is the norm, but if it does, would it encourage employers to pay staff less?

I prefer staff to be paid a decent wage and leave it to me to decide if they’ve earned a bit more for exceptional service rather than feel forced to tip to compensate for poor wages.

Ele Ludemann is a North Otago farmer and journalist, who blogs HERE - where this article was sourced.

3 comments:

Anonymous said...

Any waiters working in New Zealand are paid at least the minimum wage ~$48,000 per year. Any extra income is taxed at 30%. Two reason why I never tip in this country.

Anonymous said...

Tipping is an extortive behsviour.

Do you tip because waiter gives you a free extra size drink ( nice service, extra touch) or is waiter stealing from their employer for waiter’s own benefit ie the tip for good service.

Robert Arthur said...

On a very brief visit to los Angeles a few years ago and operating on the cheap, I was surprised how filling meals could be purchased at very modest cost. Conversation with an idle owner revealed very low wges. So tipping there is appropriate. Here we have a ludicrously high minimum wage, very protective employemnt conditions, and expensive meals at all levels. So no tipping.