Service charge: how 85% became all of it

Art. 96 as printed in the original Labor Code: service charges are split 85% for covered employees and 15% for management.

R.A. 11360, dated August 7, 2019, rewrote it: all service charges shall be distributed completely and equally among the covered workers, except managerial employees.

Check yourself

A restaurant collects ₱100,000 in service charges in a period. It has 10 covered workers. How much each?

Answer: illustrative example only. Old split: ₱85,000 ÷ 10 = ₱8,500. Now: ₱100,000 ÷ 10 = ₱10,000.

⚠️ Tandaan

Service charges don't count toward compliance with a higher minimum wage. If there is a dispute, the law calls for a grievance mechanism. If there is none, or it is inadequate, it goes to the DOLE regional office for conciliation.

Kung may service charge

• ☐ Ask how much was collected
• ☐ Ask how many share in it
• ☐ Compare with what you received
• ☐ Keep your payslips

Demand letter, handa na, kung kulang ang share mo 👇

Basis: P.D. 442 (Labor Code), Art. 96, as amended by R.A. 11360.