Do waiters and waitresses actually receive service charge?

asdsrfr

Newbie
Sep 16, 2015
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I have traveled to Cabarete for over 20 years. One of the things I hear more frequently from the wait staff in restaurants and bars is that they never receive the 10% service charge added to bills--especially if the bill is paid with a credit card. Some of the staff has gone so far as to say that the owners "steal" the money that is intended for them. Is this the truth or a ploy to get clients to leave more in tips?
 

TropicalPaul

Bronze
Sep 3, 2013
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I own a hotel and trust me, the staff receive every cent of the service charge. We deduct the 7% that Cardnet charges us for handling credit card transactions, and if I am working in the hotel I also get a share (but only when I am physically working). The rest is split between the staff. The staff can, and will, go to the Labor Ministry and force the employer to pay this if they don't. One or two of my staff used to say that I was stealing from their service charge, but we finally had a showdown with them and showed them exactly how it was calculated and they now accept that they get it all. Dominican Math education is never the best.
 

HUG

Silver
Feb 3, 2009
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I think even though Pauls place is a respectful employer there are far more on the grand scale that don't pay it. And the further away you get from money the less likely you are to encounter the obligatory service charges. So I think it is abused, yes, and money not placed in cash directly with the waiter often goes into the owners payroll account and saves him money.

I've said before that if I see this sevice charge is obligatory I try not to eat there. Obligatory service charge is ridiculous, that is his job, and that charge is his wage, to serve you otherwise what is he doing? It is then down to us to choose if the service was exceptional and worthy of a tip.

In making it obligatory our opinion on the service is already made up for us, by the employer, our opinion is void, which is shocking, hence my avoidance of anywhere who tells me what service I received before I even sat down (service charge).
 

SantiagoDR

The "REAL" SantiagoDR
Jan 12, 2006
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First off, It is my understanding that the 10% service charge is mandatory by law.


To be clear with your statement:

We deduct the 7% that Cardnet charges us for handling credit card transactions

If the total bill is $1,000 pesos, the 7% Cardnet charge would be $70 pesos.

The 10% service Charge would be about $90 pesos of that $1,000 peso total charge.
7% Cardnet charge would be about $6.3 pesos.

Are you deducting $70 pesos from that $90 peso service charge for the employees or $6.3 pesos?
 

HUG

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Feb 3, 2009
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Hug,

If you ever eat at McDonald's or Pizza Hut, etc. - check your receipt!

Nah, I won't eat there unless my daughter makes life impossible unless she gets to ho softplay with her happy meal. But that's not because of the s/c, more so that I detest processed food. But I had no idea they stuck s/c charge on. Since when? That gives me even more reason to avoid McD's.
I don't get it, what is the wage for if it is not to serve customers? And they aren't even bringing the food to my table.

Maybe I misunderstand the definition of 'service charge', maybe it should just be simply labelled 'another stealth tax'.

Anyone know for sure what defines 'service charge'? Is it not a charge on the actual processing of your payment? if not then I'd find job description interesting if serving is not there for waiting staff.
 

Bob K

Silver
Aug 16, 2004
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It's the equivalent of the UK's VAT. It should be included in the advertised price on the menu, not added on as a nice surprise afterwards, in my opinion.

Most places somewhere on the menu state taxes included or not included. Some say tax included but no service charge.

Bob K
 

HUG

Silver
Feb 3, 2009
3,940
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For the Govt., of course.

Remember if you will the 10% is added to the bill for the employees because their wages are much lower than any other industry, and the 10% is added to make up for the lower wage.

It was passed into law because natives are not tippers.

Hmm, so the government has brought in an obligatory tax that is not going to them? This doesn't make sense, this is surely at the discression of owner. If the government wanted to ensure that waiting staff were paid better they would just need to enforce minimum wages are met. I'm sorry, this just seems like people being paid to scribble more crap. If you can't enforce minimum wage who is kidding who that there is a resolution in just banging another 10% on the bill.

The reason that waiting staff earn less is admission they are not able to enforce minimum wage. Therefor what makes them think the 10% will go anywhere near the pockets of the staff working under the employment of someone who isn't even paying minimum wage. That just enables those abusing the minimum wage to capitalize even more. Double bogus bu11**** theory.
 

Lobo Tropical

Silver
Aug 21, 2010
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I own a hotel and trust me, the staff receive every cent of the service charge. We deduct the 7% that Cardnet charges us for handling credit card transactions, and if I am working in the hotel I also get a share (but only when I am physically working). The rest is split between the staff. The staff can, and will, go to the Labor Ministry and force the employer to pay this if they don't. One or two of my staff used to say that I was stealing from their service charge, but we finally had a showdown with them and showed them exactly how it was calculated and they now accept that they get it all. Dominican Math education is never the best.

As a hotel owner you should not get a share of the servers tips.
If you can't make enough on the profit margin, it's time to get out.
 

Neargale

Active member
Jul 4, 2013
347
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I was told the 10% per key goes to the kitchen staff. Any tip to the server is given over and above that.
Is this the way it works?
 

Meemselle

Just A Few Words
Oct 27, 2014
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I managed a small hotel until just recently and we were punctilious about getting the 10% to the staff. They work really hard and they get paid sh*t for the work they do. It's a point of honor. I always rounded it up for them.
 

KateP

Silver
May 28, 2004
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6
38
Hmm, so the government has brought in an obligatory tax that is not going to them? This doesn't make sense, this is surely at the discression of owner. If the government wanted to ensure that waiting staff were paid better they would just need to enforce minimum wages are met. I'm sorry, this just seems like people being paid to scribble more crap. If you can't enforce minimum wage who is kidding who that there is a resolution in just banging another 10% on the bill.

The reason that waiting staff earn less is admission they are not able to enforce minimum wage. Therefor what makes them think the 10% will go anywhere near the pockets of the staff working under the employment of someone who isn't even paying minimum wage. That just enables those abusing the minimum wage to capitalize even more. Double bogus bu11**** theory.

That "tax" was added quite a while back, 2012 I believe. All restaurants (and hotels with meals included) have to charge this amount (propina legal) by law and distribute it to their staff. That's the way it works but as others have mentioned, it's not always the way it's done.

http://www.listindiario.com/economi...-un-impuesto-pero-si-lo-parece-en-la-practica
 

Seamonkey

Bronze
Oct 6, 2009
1,906
759
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This is how the 10% Ley (service) tax is legally suppose to be handled. The owner is to collect the the 10% tax over one month and then divide it equally at the end of the month to all employees....servers or kitchen staff. I know many workers that tell me the restraurant/bar owners do not give them anything. Those restaurant/bars that do not charge the 10% are still legally bound to pay their staff the 10%. That is the law.
 

Dolores1

DR1
May 3, 2000
8,215
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www.
That "tax" was added quite a while back, 2012 I believe. All restaurants (and hotels with meals included) have to charge this amount (propina legal) by law and distribute it to their staff. That's the way it works but as others have mentioned, it's not always the way it's done.

http://www.listindiario.com/economi...-un-impuesto-pero-si-lo-parece-en-la-practica

The legal tips law dates back to 1960. Law 6293-60.

Read here in Spanish:
http://hernandezcontreras.do/Docs/Dovinet-74e4822d-c4fa-4db5-85ff-14d634ee846d.pdf
 

drstock

Silver
Oct 29, 2010
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Cabarete
Most places somewhere on the menu state taxes included or not included. Some say tax included but no service charge.

Bob K

Yes - "somewhere on the menu". You have to search to know for sure. I know it is similar in the USA, but I think it is better and clearer as it is done in the UK - tax is included in the price stated on the menu. Tip or service charge is then at the clients discretion. No confusion and good service is rewarded - poor service is not.
 

HUG

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Feb 3, 2009
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By law, the minimum wage is lower for service staff. The idea of the law is supposed to be that the 10% from the customer makes up the difference.

Haha, sounds about right. So the minimum wage is only for those that are on that wage, those who are not making that wage must seek it elsewhere, lol. That is not a minimum wage, that is just........................ well, it stands for nothing, but not surprising. Makes sense that it doesn't make sense.
 

HUG

Silver
Feb 3, 2009
3,940
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That "tax" was added quite a while back, 2012 I believe. All restaurants (and hotels with meals included) have to charge this amount (propina legal) by law and distribute it to their staff. That's the way it works but as others have mentioned, it's not always the way it's done.

http://www.listindiario.com/economi...-un-impuesto-pero-si-lo-parece-en-la-practica

Yeh I noticed it creeping in a couple of years ago. But still does not serve any purpose at all. Those who are not paying the minimum wage will continue to not pay the minimum wage and pocket the extra cash the government has given them the right to ontop of usual charges.