All rank-and-file employees of an employer collecting service
charges are entitled to an equal share in the 85% of the total of such charges.
The remaining 15% of the charges may be retained by the management to answer
for losses and breakages and for distribution to managerial employees, at the
discretion of the management in the latter case. Service charges are collected
by most hotels and some restaurants, night clubs, cocktail lounges, among
others.
It shall be distributed to employees once every two (2) weeks
or twice a month. Where the company stopped collecting service charges, the
average share previously enjoyed by the employees for the past twelve (12)
months immediately preceding such stoppage shall be integrated into their basic
wages.
Notes: Some stores don't mention what the price in the menu included/excluded. Sometimes, you may get surprised seeing the bill with 12% VAT and 12% service charge. Total 24% additional...TT