Work in a restaurant - can service charge be deducted when I go on paid leave?

I work in a restaurant, my service charge comes in my salary slip is this right? If i go on paid leave then service charge can be deducted or not? and is service charge comes under tax levy?

Dear Mohit,

The service charge is not a tip. Owners of restaurants or hotels collect it for the maintenance of the crockery, cutlery and other items. Part of the service charge is diverted to employees who actually provided service.

There is no fixed rule for owners to collect the specific percentage of bills as a service charge. Generally, it varies from 5% to 10%.

Owners of restaurants or hotels collect the service charge from the bill. Therefore, it is construed it as their income. While disbursing part of this income to the employees, this has to be reflected somewhere. Hence pay slip is the right means to show the disbursement of the service charge.

The service charge that you earn through pay-slip is your income hence it is taxable. Service charge is distributed as per the exact attendance i.e. your weekly off or any other absence is excluded hence generally you should not get a service charge for your leave period. However, service charge collection and further distribution is convention. There is no rule per se.

Ok...

Dinesh V Divekar
+91-9900155394

Hi, we would like to distribute service charge within the staff. Does anybody help me to provide the excel format with point or grade wise.