Unlock the Editor’s Digest free of charge
Roula Khalaf, Editor of the FT, selects her favorite tales on this weekly e-newsletter.
“What’s the worth of a tip?” That is likely one of the questions being debated within the US and all over the world in latest weeks after presidential contenders Donald Trump and Kamala Harris proposed tax breaks on suggestions for service staff, a transfer some view as a technique to win votes in swing states.
The act of tipping for service means one thing totally different to People than it does to individuals within the UK. In Britain and Northern Eire, gratuity is often non-obligatory, seldom exceeding 13 per cent of a complete restaurant invoice. In distinction, the US has seen tipping evolve right into a near-mandatory observe for a a lot wider vary of companies, with beneficial quantities rising to as a lot as 25 per cent in latest months.
Tipping tradition: beneficial studying
As Brooke Masters highlights in her column within the Monetary Instances on tipping — which attracted a whole lot of feedback from readers — this pattern is ingrained within the US employment system, the place decrease wages and subsidised pay for restaurant staff have lengthy been an accepted normal.
What do you assume? Ought to US employers be required to pay service staff a full minimal wage, no matter suggestions? Or is 25 per cent an appropriate normal gratuity? Inform us your views by voting in our ballot or writing within the feedback part under.