House OKs bill raising employee share from service charge

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The House of Representatives on Thursday unanimously passed on third and final reading House Bill 8784, which seeks to increase to 90 percent the share of rank-and-file and supervisory employees in the service charge. The proposed measure  directs full and equal distribution of the share.

Metro Manila (CNN Philippines, January 17) — Workers of hotels, restaurants, and other similar establishments may soon get a higher share of service charge.

The House of Representatives on Thursday unanimously passed on third and final reading House Bill 8784, which seeks to increase to 90 percent the share of rank-and-file and supervisory employees in the service charge. The proposed measure directs full and equal distribution of the share.

The remaining 10 percent will go to the management to cover pilferages and breakages, and for distribution to managerial employees.

Under the current law, 85 percent of total service charge collections should be divided among employees, and 15 percent goes to the company.

Should the minimum wage be raised, employee share from the service charge should not determine compliance with the higher minimum wage.

The Senate in December last year approved a proposal that aims to give all service charge collections to employees.