All service charge will go to workers in Philippines


Recently duterte signed a new law that give workers of restaurants, bars, cafeterias and hotels 100% of the service charge. This is Act 11360 that was signed on August 7.

The old Article 96 of the Labor Code of the Philippines gave restaurant and hotel workers 85% of the service charge collected from customers while management get the remaining 15%. That is already amended by the new law where the owner and managers will get nothing of the service charge.

This means only frontline service workers will enjoy the benefits of the law.

What is service charge

Some restaurants and hotels add a compulsory service charge to your bill, while others will leave it optional. Actually you must be it only have to if it is made clear, verbally or by written notice, before the meal.

In the Philippines you can refuse to pay the service charge even included in the bill as when you were not satisfied with service.


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