- 10-Jan-2025
- Family Law Guides
The primary difference between a service charge and a tip lies in their voluntary nature and how they are handled by both the consumer and the business.
If you dine at a restaurant where a service charge of 15% is added to your bill, this amount is automatically included in the total charge. On the other hand, if you choose to leave a tip (for example, 10%) in addition to the service charge, this tip is given voluntarily based on the level of service you received.
In summary, while both a service charge and a tip are intended to compensate the service staff, the key distinction is that the service charge is mandatory, set by the restaurant, and included in the bill, while a tip is voluntary and decided by the consumer.
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