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Apr 02 2009

Do you need to tip for service in Malaysia, Switzerland and the USA?

Published by *lynne* at 11:55 pm under Food & Drink, Malaysia, Switzerland, USA Edit This

Something I still have trouble with, despite having had over 7 years here in the USA, is the whole tipping concept.  It’s something practically non-existent in Malaysia and Switzerland!

You see, in Malaysia, restaurants usually have two surcharges: a 5% government tax, and a 10% service tax.  This service tax, although it doesn’t go to the waitstaff directly, is essentially your tip. I believe this is also usually the case in Switzerland - le service est compris!  Tipping for other services is NOT required, although in touristy places, locals have been “corrupted” and expect tips for services rendered, even from fellow locals, especially for foreign-looking locals like me.  Ugh.

Tip 15% 20% Malaysia USA Switzerland amalaysianabroad.today.com
image source

Then there’s the United States.

I suppose for a collective that probably invented the rat race, for a country that totally subscribes to the concept of “money talks”, it shouldn’t be a surprise that almost every type of service provider expects to be tipped?

In my college years, getting a haircut for $16?  You’re expected to give a $20 bill and NOT wait for change.

You stay at a swanky hotel with a doorman?  Tip!

The bellhop brings your bags up to your room?  Tip!

You ordered pizza, and are already charged a delivery fee?  Tip the delivery person!

Going to a sit down restaurant?  Or even a greasy diner?  You *have* to tip your waitperson!   Did you know that they are assumed to be receiving a certain percentage of the value of the checks/bills and are taxed accordingly?  So if you stiff your waitperson, you’re doing them a double whammy, denying them income they are getting taxed on.  I try to leave at least 15% unless service was atrocious, and slightly over 20% if service was particularly good.

There are a few rules of thumb floating around in relation to the correct/best way to figure out the “correct” tip amount.  Here are the most common I’ve heard:

  • “Oh, just double the tax!” - … but this doesn’t quite work because establishments in Chicago charge over 10% tax, suburban places might charge around 8% tax.
  • Tip 15% 20% Malaysia USA Switzerland amalaysianabroad.today.com
    image source
  • “It should be 15% (or 20%) of the pre-tax total” - … really?  To be safe I go with the grand total.
  • “Count the alcohol cost separately” - … drinks at restaurants are usually quite highly priced, so I do agree that the check/bill is inflated. But then what? Do you mentally add $1 per drink? You can’t just not include the drinks part, right?!

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Some useful reads:

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So, how do you feel about tipping?  Is it something appreciated or expected where you are?  I’d love to hear more perspectives from Malaysia, Switzerland and the USA *and* additional insights about other countries too.  Comments are all yours!

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13 Responses to “Do you need to tip for service in Malaysia, Switzerland and the USA?”

  1. Dutchieon 03 Apr 2009 at 7:06 am edit this

    SG do away with tipping since the 1980’s as there r 2 taxes imposed on the bill. For a long time, we did leave the loose change for the staff. I’m glad that the rule is crystal clear for all concerned.

    There is no tipping in NL. Guests may leave a tip if they r happy with the service. The VAT is included in the price of a meal.

    I think that wait staff (in the USA) should be paid a decent wage so that they dont hv to rely on tips to survive. From my point of view, when I’m out dining, I dont want to see the expectant faces of the staff or to hv shoddy services bec I’m not tipping. I hv heard from friends in that trade that such practices do arise - i.e. less focus on those who r known not to tip.

    We can expand this thought to other areas - like foodcourts, hawker centres n fastfood. They too provide a service but doesnt expect to be tipped !

    In my town, door-to-door flyers distributors r persistently ringing doorbells b4 the december festive season begins, to collect their “rightful” tip. The local newspaper even went so far as to remind us to tip generously as the standard 5 euro is considered much too little. Come on …. I hv to tip the 5-6 kids 10 euro each for something that I dont need in the first place ? Why corrupt the work ethics of these kids ? Their paper rounds r good practice for later when they r in the rat race n understanding the value of hard work !

    On top of this incident, we hv housewives who r collectors for charities/funding a cause n we get them at least once a week at our front door asking for a generous donation :-( The malls/supermarts r setting up stands as well for other causes. I often think that they should organise an event where there is an exchange of money for goods sold instead of simply expecting a handout .. afterall, we too had to work hard for our income !

  2. koshon 03 Apr 2009 at 11:13 am edit this

    yeah, tipping can be a rough issue. it is unfortunate, but in the USA many in the restaurant business (can’t speak for other service industries) DO have lower salaries because of “expected income” from tipping.

    couple that with the fact that in most places, the tip left is shared among others that you might not think about - the hostess, the busboys, the bartender (maybe the cooks?). plus, we can’t always comprehend the “behind-the-scenes” activities - just because our face-time with a server may be a total of several minutes, they are putting in orders, looking over the table and deciding when to “interrupt” to see if anything is needed (usually right after everyone has gotten their mouths full), coordinating drink refills and when to clear items, etc.

    all the staff are (theoretically) getting some part of that tip. so when we are grumbling about poor service and want to dock our waitstaff, we should keep in mind that we’re docking these other employees as well. not that this fact necessarily over-rides a poor tip as “discipline” for bad service … but i wonder how many waiters/waitresses really reflect on the size of the tip compared to their level of service. are they gonna “learn,” or just assume we are cheapskates?

  3. jodapoeton 03 Apr 2009 at 3:30 pm edit this

    Lynne, I normally tip 20% as it’s easy to figure out. If the service and or food is bad at a restaurant I leave nothing. I use 20% across the board taxis etc…In fact I’m so used to leaving tips that when I went to Hong Kong where tipping is not done - they automatically add a 10% fee in restaurants etc… I still left a tip. I felt guilty not doing so.

  4. rozandrewson 04 Apr 2009 at 1:33 am edit this

    Very interesting to read your post and all the comments. In Australia, as in the UK, tipping is not commonplace. If you received exceptionally good service and feel that you would like to leave a tip or round up the bill, then you can do so, but it is not expected. I’m not sure if the tips go directly to the waiting staff - I tend to think that they don’t but I might be wrong.

    On my visits to the USA, I was always worried that I would get it wrong and offend someone! Like Mike said, where do you stop? As a foreigner who is unaware of who to tip, when, and with how much, it’s easy to get it wrong!

    Like jodapoet, an American friend of mine always leaves a tip as she feels guilty for not doing so.

  5. Lis Sowerbuttson 07 Apr 2009 at 6:34 am edit this

    I hardly ever tip - there are plenty of tough jobs which pay minimum wages and waiters is hardly the worst of them - at least they are inside! I never tip anywhere in the Western world, I do tip in the 3rd world - Malaysia was kinda on the cusp for me - I tipped on the east coast in restaraunts that had table service - not food court type places. I don’t tip taxis anywhere - you either pay by the meter or you negotiate up front and that definitly means the tourist pays more!

    I tip locals who go the extra mile for the stupid lost tourist (me) who can’t speak the local language. In India if I found a good rickshaw driver I would engage him for the next day and pay him a fair rate - cheapest way to get a guide and see another side of the country.

    My worst experience with restaraunt service was definitly in the US - nice restaraunts to - someone else was paying - so I just walked out without tipping and never returned LOL

    What I do with small businesses that I need an ongoing relationship with e.g the builder or plumber - I as soon as I get the bill - don’t let them wait until its due

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