Press Releases
IRR to signal implementation of new law on service charge – DOLE-RO I


With the signing of Republic Act 11360, service charges will soon be enjoyed fully by rank-and-file employees in hotels, restaurants and other similar establishments.

Signed by President Duterte on August 7, the law amended Article 96 of the Labor Code, which gave restaurants and hotel workers only 85 percent of the service charge collected from customers, while the remaining 15 percent was retained by the management to cover losses and damages.

“We rejoice with our workers over this latest legislation.  Through it, they can share from the fruits of their service and hardwork that benefit businesses,” Director Lacambra said.

The Regional Director stressed, however, that the implementation of the new law is still subject to publication requirement and the issuance of its implementing rules and regulations.

The DOLE is mandated to issue the implementing rules and regulations within 60 days from the effectivity of the law.

“Let us wait for the completion of the entire process that will allow the official roll out of the law,” he said.

He clarified that service charge is different from tip, as the first is added to the bill by the business and not initiated by the customer.  Tip, on the other hand, is voluntarily given by the customer as a reward for service.

The new law also provides that in the event that the minimum wage is increased by law or wage order, service charges paid to the covered employees shall not be considered in determining the employer’s compliance with the increased minimum wage.  END/Arly Sta. Ana-Valdez

RD Nat V. Lacambra
Sumangbay kayo! Because we want to serve you better, we have built our website.
Contact us:

Your Email


(Maximum characters: 50)
You have characters left.

Your Message

(Maximum characters: 300)
You have characters left.