Is Tipping 20% Too Much in the Philippines?

[not so old china hand]

24 minutes ago, Old55 said:

I've never visited Europe or Australia but understand tipping is not the norm there.

Unless things have changed there is a huge variation in expectations in Europe. At one extreme is France where 17.5% is the expectation on everything. Even the person who hires out rowing boats in the park expects their obligatory pourboir.  

 

[Jeff R Us]

38 minutes ago, Old55 said:

I always get at least one hair cut and several shaves during our visits.  I see the same guy and tip him 50 Peso's. In return I have always recieved an outstanding detailed hair cut.

Same here! I also give the shampoo gal 20 pesos and now she gives one terrific head and shoulder massage.

[TunaT]

On 12/26/2017 at 1:52 PM, bows00 said:

If I eat at an American franchise restaurant in the Philippines, I could easily spend $20 (1000 peso) for me and my date.  In the US, I would normally tip 20%, or $4 (200 peso).  Now based on what the waitress/waiter earns in the Philippines, that's a lot...

What is the normal tipping practices there?

Generally 20% is way too much for here. P20, P50 in my experience is plenty adequate.  Don't look like the rich foreigner. Pay and tips here is far different than places like the U.S. .  Over-tipping can mes up the local economy. There are always exceptions to nay rules though. Just be sure it is an exception. I have been here 8 years and this works for me and others I know. Nice of you to be asking. 

 

[davewe]

9 hours ago, Old55 said:

My wife and Filipino friends have made me understand this as well. As a visitor I am tempted to tip 20% unless poor service as Jeff pointed out.

As an American we normally tip service industry folks. I've never visited Europe or Australia but understand tipping is not the norm there.

Are there any circumstances Expats make an exception and tip well?

 

 

I think that the sentence I highlighted is where you have kind of gone wrong. It is tipping well; it's just tipping well within the culture and its expectations. That said, it's your money and everyone can do as they wish. But the American guilt trip about tipping does not exist (at least not the same way) in the Philippines.

Here's a story that demonstrates the cultural reverse. My wife spent 4 years living with me in the US. We went out regularly to dinner with another couple and of course the guys paid and tipped; 15% that is. One day we went to a Chinese restaurant we all kinda like and the girls immediately announced that they would be paying for dinner. Cool!

The service was not very good that night. The check arrived and the girls talked for at least five minutes until they decided on the tip. They left $1.25 for a meal for 4 people. My buddy and I said "We will never be able to eat here again," but it was the girls decision and we didn't overrule it. They based their decision not on the culture of the US, where tipping even for mediocre service is a requirement, but on the culture of the Philippines where tipping is optional, particularly for poor service. In each case you have to work within the confines of the culture. 

 

[Dave Hounddriver]

Seems the debate has been going on since the early 1900's:

Quote

By the 1900s, Americans considered tipping to be the norm and, in fact, were frequently criticized for overtipping.  Englishmen complained that "liberal but misguided" Americans tipped too much, leading servants to feel shortchanged by the British.  Similarly, a 1908 Travel magazine found that Americans overtipped but received poorer service because Americans did not know how to treat servants and service members.

Here is the article that came from.  Rather an interesting story.

[canadamale]

I think a 20 % too is too much anywhere. I have noticed in Canada when using a debit card the tip choices start 15, 20 25 % . Or you can choose your own %.  I choose 10%, unless the waitress is very very cute, then maybe 15. I PH I usually round up to the nearest 50 or 100 peso. Whichever seems most appropriate. With service charge no tip or very small tip for exceptional service or very cute staff. The cute staff  tips may seem sexist, I cannot help myself.

Edited January 2, 2018 by canadamale

[AlwaysRt]

If I tip, I stick to 20 or 50 pesos - unless I feel particularly generous (great service) or ready to go and don't care about the change...

 

[Dave Hounddriver]

I am pleased to see this quoted article (below).  It is about time that the  upward spiral of percentage tipping came to an end.  I see it as a case where the youngsters are smarter than their over-tipping parents.  Even the doom and gloom prediction that it will cost them their jobs is not discouraging them.  You Go Kids!

Quote

 

Millennials (in the US) may kill tipping

Debt-laden millennials who patronize the city’s bar and club scene are now officially among the worst tippers, according to a new study.

This is true even though many millennials work in the service industry and rely on tips.

“We’re seeing younger adults tipping less, and even showing a greater preference towards eliminating tipping altogether,” according to Matt Schulz, the senior analyst on the study by CreditCards.com.

As more apps like Uber don’t include tipping, many young adults feel the extra cash is better in their pockets.

Spoiler

At the same time, advocates are now pushing to abolish the New York “tip credit” that permits restaurant owners and bartenders to pay lower than the minimum wage because workers receive gratuities.

This could mean tips get scrapped altogether, and that could hurt already struggling young adults employed in the service industry. They could be kicked to the curb in a wave of mass closures and layoffs, according to industry analysts.

Eliminating the tip credit could also jack up payroll costs by an average of $14,000 annually for each full-time worker, according to a study by the New York Hospitality Alliance, based on the current tipped hourly minimum wage jumping from the present $8.65 to New York’s pending minimum of $15.

Forget about tipping under this expensive change. It won’t be outlawed, but many analysts think patrons will balk when it comes to today’s standard gratuities like 20 percent of the pretax bill.

Some establishments may discontinue the tipping custom, opting instead to pay workers a flat base salary, such as the minimum wage.

On top of this, millennials, ages 18 to 37, already tip less than the overall median — and 10 percent don’t tip at all, according to the CreditCards.com report.

“Many of our customers simply don’t have the disposable income to pay higher prices on food and drinks, which is how many establishments will respond if the tip credit is eliminated,” said David Mohally, owner of Bua, a gastropub in the East Village that employs 15 people. “Our customer base is 20-somethings — students, artists and young people — who’ve moved to New York for their first job. If we have to raise our prices to offset the change, we risk losing many of them.”

That sentiment is widely shared. “The city’s bars and restaurants employ a great number of millennials, where the average hourly wage is already $25 [including salary and tips] under the current system,” said Andrew Rigie, executive director of the New York City Hospitality Alliance.

If the tip credit is spiked, hourly payroll for a vast number of city establishments will have surged 200 percent since 2015.

“Imagine if your rent or grocery costs went up 200 percent,” said Rigie. “If the tip credit goes, so will many of the jobs held by millennials, because more establishments will close.”

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[lobojohn]

On 12/29/2017 at 4:56 PM, Jollygoodfellow said:

Well I know I now think in peso. Rarely do I try to convert it as to me now thats the currency I use or have in my wallet. What do others do who have lived here awhile ? Do you think in pesos? 

only pesos

[Queenie O.]

Speaking of the Philippines because this is our home now, my husband usually does the paying in restaurants so he usually gives about 10-15% and I don't argue as he seems to know what's expected.

I recently changed beauty parlors from a Korean salon to a Japanese owned one.  The Korean staff owner was used to no tipping but the Filipino staff always appreciated a tip in their tip box that they made. I now go to a Japanese owned salon, and the Japanese stylists and Filipino staff I was told when I asked were just tipped individually if at all.

I'm a strong believer in incentives, so if it's up to me I always tip generously. I like to be remembered and treated special.  I factor in a generous tip for whoever works on me as part of the cost of my fun experience.  I know that wait staff work hard for not equitable pay with long days on their feet and tiring jeepney trips back and forth to homes at the end of the day, often single mothers leaving their children for long hours mostly 6 days a week. If they are 5 minutes late their pay is docked in spite of impossible traffic.

I can afford to spread some joy, so based on the situation and wait person, I'll weigh on the side of generosity.  To each his own I guess. I feel that no wait staff here is going to expect that everyone else will do the same.