Tipping and service charges in Ireland

Tipping customs differ widely between countries, so newcomers often need to work out what applies in Ireland. Four things stand out:

• Tipping is voluntary. Irish law defines a tip as a voluntary payment by a customer, intended for the staff.
• Taxis. Tourism Ireland, the official tourism body, says it is not essential to tip a taxi driver in Ireland, and suggests 10 to 15% of the fare if you choose to.
• Service charges. Some bills include a charge described as a "service charge". It is a mandatory charge, not a tip, but by law it must be passed on to staff.
• Notices about tips. In restaurants, bars, hotels, hairdressers and similar businesses you may see a notice explaining how the business shares tips. Displaying the policy is a legal requirement.

The Payment of Wages (Amendment) (Tips and Gratuities) Act 2022, in force since 1 December 2022, changed how tips are handled in hospitality, tourism, hairdressing, taxi and delivery services, among others:

• Employers cannot use tips to make up workers' contractual pay or deduct anything from wages in relation to tips.
• Electronic tips (by card or app) must be distributed fairly to staff; employers can only keep a share in limited cases, such as to cover tax or card fees, or where they regularly do the same work as their staff.
• Any charge called a "service charge", or worded so that customers would think it is for service, must be distributed to staff as if it were an electronic tip. Misleading customers about a service charge is an offence.
• Cash tips are not regulated beyond the employer's displayed policy on how they are dealt with.

The Workplace Relations Commission handles complaints from workers about the distribution of tips.

Practice varies by place, type of business and person. The law sets out how tips are shared, not whether or how much you should tip, so there is no official "correct" amount. Tourism Ireland's 10 to 15% suggestion is for taxis if you choose to tip. If a bill already includes a service charge, that charge must go to staff.