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.
Cover image via themalaymailonline.comAll hotels and restaurants are no longer allowed to impose a service charge effective today, 6 April 2015
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
Furthermore, the establishments that are imposing the charge must display a notice to customers
Image via ReloadFood.com
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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