Tipping in Hungary: Here’s how to make the right decision this summer

There is often confusion about tipping in Hungary: whether the now-common service charge (szervizdíj) equates to a tip, and whether it’s necessary or appropriate to leave an additional tip if a service charge is already included.

Tipping in Hungary: Should I? When?

Illustration. Photo: depositphotos.com

Various payment methods differ in terms of taxation and voluntariness, Pénzcentrum writes. The Hungarian Competition Authority (Gazdasági Versenyhivatal) advises consumers to consider who they wish to reward with their tip and make decisions accordingly.

Restaurants increasingly list service charges (szervizdíj in Hungarian) on their menus, raising several questions for consumers: is this the same as a tip? Is it mandatory? If a service charge is included, should an additional tip still be given?

A service charge, also known as a serving fee (felszolgálási díj), is a legally defined type of income for hospitality establishments, intended solely for employee wages. This extra charge is shared among all employees according to a pre-determined formula, not just the server.

Service charge

The amount of the service charge is set by the establishment but must be clearly indicated on the menu and other informational materials. Paying the service charge is not optional; it must be paid by the consumer. Its advantage is that, due to favourable taxation, it significantly contributes to fair wages for employees.

Tip

In contrast, a tip is a voluntary payment determined by the consumer. It allows guests to show appreciation and gratitude for the service. However, the method of tipping in Hungary is crucial as it affects taxation and whether the server receives it.

A tip goes directly to the server and is tax-free if:

• Given directly to the server, separate from the total bill, in cash, or
• Placed in a designated tip jar, the contents of which are shared among the staff.

A tip is managed by the employer and is subject to tax and social security contributions if:

• Paid in cash or by card along with the total bill, or
• Placed in a designated tip jar, the contents of which are distributed by the employer.

These distinctions highlight the important differences between a service charge and a tip. It is crucial to note that tipping in Hungary is always optional, and everyone has the right to decide whether to express their satisfaction in this manner based on their judgment and financial situation.

Read also:

• Habits regarding tipping in Hungary may shock you
• Do people tip in Hungary or not?

Featured image: depositphotos.com