Where the service charge you pay on a bill really goes…

dirhams (IS) copyI spoke to a friend one time about the service charge we are paying towards the bill at the end of a meal.

He works in hospitality himself and what he had to say was very interesting.

Of the 10% service charge we are paying for the bill, only about 1.75% actually goes to the staff at the end of the month.

The companies take the service charge and put it towards all their expenses. Staff housing, Dewa, transport, medical and Etc.

So my question is, is it really fair that we pay service charges when these staff get minimum wages and the companies take this money to cover all their expenses?

Confused, UAE

7 Comments

  1. The question is what are you going to do about it? If you wish to dine at the restaurant you will pay the bill. If they do not charge service charge they can simply increase the cost of the meal. This is how business run so just relax in life.

  2. Apparently they’re going to introduce VAT soon.

  3. Shock, horror … service charge not going to staff … who knew?

    Oh yeah, everyone as this happens pretty much everywhere in the world and if service charge does go to service staff then THAT is the unusual thing

  4. This does not surprise me in the slightest. Perhaps tip the wait staff directly…put the money in their hand and say “Thank you, please keep this.”

  5. The staff is getting free accommodation, transportation, meals, uniforms, laundry, medical coverage, return flights back home etc….. cut of the service charge and from bad service we will soon get no service – automated 5* self services…. ho wait – can’t handle self service in petrol stations….

  6. we should be getting a lack of service rebate in most Dubai establishments!

  7. I am from the hospitality industry and I have seen this happening world over. Somehow the owners have this in the mind that anything that is charged to the guest belong to them. Even the small part given to the staff is given after a lot of reminders by some bosses.
    Not surprising at all to me………, Unfortunately we cannot do anything about it.

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