If you work in the restaurant or hotel industry, you’re most probably familiar with Service Charges.
Here’s what’s written on the Philippines Labor Code:
“Art. 96. Service Charges.—All service charges collected by hotels, restaurants and similar establishments shall be distributed at the rate of eighty five percent (85%) for all covered employees and fifteen percent (15%) for management. The share of the employees shall be equally distributed among them. In case the service charge is abolished, the share of the covered employees shall be considered integrated in their wage.”
We’ve also written about Service Charges in the Philippines in one of our Knowledge Base articles, which you can read if you want to learn more.
In layman’s term, this means that employees get 85% of the service charges, while management keeps 15%. Seems simple right?
Unfortunately, paying service charges to employees can still get a bit tricky. There’s still going to be a lot of manual computation involved, and quite frankly, you surely don’t have that much time in your hands. After all, you’ve got a business to run!
And if there’s one thing we love to do here at PayrollHero, it’s to save valuable time and make everything easier for our clients.
So today, client or not, you can have exclusive access to our basic Service Charge Tool. Awesome, right?
All you have to do is sign up here to get your Service Charges Tool for FREE.
P.S. We can’t keep this available forever, so we are only offering this for a short period of time. So don’t miss out and get it now!
Of course, with PayrollHero everything in your payroll process can be completely automated, including Service Charges. So feel free to reach us at firstname.lastname@example.org if you’re interested to learn more.