Latest News On 10% Service Charge: It Is No Longer Allowed

UNLESS the restaurants, hotels and cafes have a working agreement with the employees. Then, they are allowed to impose the 10% service charge.

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All hotels and restaurants are no longer allowed to impose a service charge effective today, 6 April 2015

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Establishments are only allowed to impose the 10% service charge if they have a collective agreement between employer and employees

This is because the purpose of service charge is to supplement the wait staff's meagre income, yet many employers have been known to abuse it

The staff members at Serai Restaurant are worried that their livelihood will be affected if service charge is scrapped.

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Furthermore, the establishments that are imposing the charge must display a notice to customers

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This is to be the rule until the newly-established working committee completes a review on service charge in Malaysia

After the implementation of GST, customers were complaining about the service charge that was also subjected to the 6% government tax

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Many were confused as to whether they should pay the service charge. To fully understand why restaurants impose it and whether you should pay for service, we recommend reading this:

Update

Restaurants And Hotels To Display Service Charge Certificate If They Want To Charge For Service

The minister has yet to announce when would this measure be implemented.

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