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Understanding the Difference Between Service Charge and Tip in Hungary

11.07.2024 | 🇭🇺 Hungarian competition authority

The Hungarian Competition Authority provides guidance to consumers on distinguishing between service charges and tips in restaurants, emphasizing the importance of understanding who benefits from each type of payment.


A Hungarian competition authority advises consumers on the distinction between service charges and tips in restaurants, highlighting the uncertainties and questions that may arise regarding these payments.

Service charges are a mandatory additional fee determined by the restaurant, contributing to fair wages for all staff, while tips are voluntary and directly benefit the server.

It is crucial for consumers to consider how they wish to express their satisfaction and gratitude through tipping, as the method of payment can impact taxation and distribution among employees.

The authority aims to assist consumers and businesses in recognizing misleading information and supporting their decisions, offering useful insights on their website.

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