Common Cents: Here's a Tip

Hello, and welcome to Common Cents, where we discuss topics relevant to those living below the poverty line and other topics that are of importance to those living paycheck to paycheck. This week, we're focusing on the subject of tips and gratuities.

Lately, though, I have come to notice that 10% isn't enough any more. A combination of social pressures and restaurant standards tends to push that tip level up to 15% at minimum; combine this with rising prices in general, and eating out becomes less appealing as the overall cost skyrockets.

Yes, I freely admit it. I'm not fond of tipping. I'm well aware that in many jurisdictions, waiters are expected to acquire some of their earnings through tipping. In the United States, to be precise, the IRS requires restaurant employers to ensure that their total tip income reported is at least 8% of the gross receipts for that period, and to allocate income to make up the difference; in short, even if nobody tips a waiter, they still must be paid - by the restaurant - 8% of the amount of the receipts they covered. This means that a 'standard' tip in the United States should be about 8%, right?

Wrong. The standard expectation for American tips in a restaurant tends to range in the 15 to 20% range, with higher percentages expected at more expensive restaurants. The whole thing, quite frankly, doesn't work. A percentage-based tip system implies that somehow the service will be better as the food quality improves - whic often is not the case. I've eaten at diners that charge ridiculous prices because they're the only ones around, where the service is abysmal to nonexistent. I've eaten at inexpensive buffets during the lunch hour where the waitstaff is so polite that you'd swear you were in an expensive resort.

Here are a few examples of extreme tipping behavior in foreign countries, care of that dubious information source, Wikipedia.org: 

Egypt: In Egypt, public bathrooms are staffed, and people are expected to tip the attendant; in some cases, the size of the tip determines how much toilet paper is provided. Locals may request charitable gifts in exchange for minor services such as holding a door open or helping a person who has fallen. Tips for valued services generally are in the 20% range, with 10% to 15% for taxi or restaurant services. 

Japan: In Japan, tipping is not customary and is seldom done in casual restaurants; it is considered rude as it implies that servers must be paid extra in order to ensure they do their job properly. 

France: In France, a service charge is always included, and so tipping is not expected.

Greece:  Grecian tips traditionally do not rely on a percentage, but instead on how satisfied a customer is with the service (from a few coins to large amounts of money). Taxi drivers are not often tipped.

Serbia: In Serbia, tips are not expected (although they are welcome) from locals; foreigners are expected to tip more frequently, as it is generally assumed that they have more money with which to tip. 

Spain: Tipping is not a major custom in Spain; Spaniards only generally tip in restaurants, either with the small change they receive after paying a bill, or roughly 5 to 10% in more sophisticated restaurants.

United Kingdom: Tipping is strictly optional; a customer may choose to provide one, but demanding one is considered rude. There is no 'correct' percentage for tipping, although 10% provides a good standard minimum; some restaurants include a 'service charge' instead. Tipping is fairly common for delivery services, though. 

Mexico: Similar to us here in the States, Mexico commonly sets the standard for tipping at 10 to 15%; people who tip less are generally considered miserly and a subject of scorn.

Chile: Before 1981, it was mandatory to provide a tip in places like restaurants, with a required tip of between 10 and 20%. In modern times, although it is no longer an obligation, it is usually assumed that customers will leave a tip of 10% for satisfactory service.

Obviously, the cheap point of view would be to point out that 'tipping is technically optional, so why do it?' In most cases, we tip out of guilt - a feeling of apology. We have tip jars in places that don't require tipping to guilt people out of money, and we politely suggest that customers pick up the slack for employers who don't pay enough by tipping as well. Even in professions where the employer forbids its employees to accept tips, the employee always appreciates a tip, especially for a job well done. (Wal-Mart requires its employees to refuse tips if offered them, but I can state from personal experience that I've witnessed quite a few cases in which a stockperson or other associate gladly accepted a tip in exchange for their assistance.) 

Personally, as I've already said, I don't like tipping too much. When I'm by myself, I prefer a flat-rate tip. One dollar per person served, or roughly ten percent of the check. It's a nice, round number, and it's not too expensive, but not too cheap, either. The same principle generally holds true with deliverymen and others for whom tipping seems to be required. If I happen to be paying by debit card, it's easier to round up the total to a certain dollar amount; the specifics of the tip are mostly semantic in nature, at least in this country.

However, this also brings up the point of the poorly skilled server - the one who, for whatever reason, bungles your service. Maybe your waiter switched your sides; perhaps they accidentally switched your order with one that you are severely allergic to. Maybe they managed to dump an entire pitcher of ice water on you. In these cases, do they really still deserve a tip?

What do you generally do when it comes to tipping? What's the 'social standard' for where you live? Do you tip on a percentage scale, or a flat scale, or not at all? And most importantly, how much do you vary your tip by for good or poor service? Leave a comment and tell me about it!

Austin Cushing, Money Correspondent:
Austin's column, Common Cents, published every Tuesday to Gather Essentials: Money is focused on life below the poverty line and other topics that are of importance to those living paycheck to paycheck.

Austin Cushing is an eccentric writer, programmer, poet, and photographer, as well as a former maintenance worker for Wal-Mart Stores, Inc. He writes from personal experience and personal opinion, and enjoys finding the humor in even the darkest aspects of the world. In addition to his column, he maintains Gather groups on a diverse range of topics, from gaming to political discourse.

You can find all of Austin's Common Cents columns at http://commoncents.gather.com. Keep up with Austin's other postings and Gather activity by joining his Gather network -- just click here and select the orange "Connect" button on the left-hand side of the page.