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F&B, hospitality employees now entitled to 100 percent share in service charge

Before this measure was signed into law, employees were only entitled to 85 percent of the service charge collected from customers

Photo by Kenny Luo /Unsplash

On Aug. 7, President Rodrigo Duterte signed Senate Bill 1299, which will allow foodservice and hospitality workers to receive 100 percent of the service charge paid by customers.

Republic Act No. 11360 states that all rank-and-file and supervisory employees working in hotels, restaurants, and similar establishments should receive 100 percent of the service charge collected. 

Employees who are classified as managers or workers who “who lay down and execute management policies or to effectively recommend such managerial actions” are not covered by this provision.

Before this measure was signed into law, employees were only entitled to 85 percent of the service charge collected from customers. As such, the signing of this law is a milestone in the ongoing fight for better labor conditions of foodservice and hospitality employees.   

Sa wakas, natapos na rin po natin ang laban ng ating mga manggagawa sa services sector na matagal nang hinihiling ang buong pagbabahagi ng service charge sa mga nagbibigay ng serbisyo sa mga restaurant, hotel, at mga katulad na establisyimento,” said the Senate Committee on Labor Chairman Senator Joel Villanueva in a statement.

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