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The rules of tipping
Tipping is an expression of your satisfaction, not an obligation. Read our article to learn when and how much to tip.
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When visiting a restaurant, the hairdresser, or taking a taxi – if the service is good, many people leave a tip. The Swiss are no exception, though their rules for tipping are. In most countries, tipping is welcome as a recognition of a job well done, whereas in others, showing your appreciation with money is seen as a faux pas. In China, for example, service staff are forbidden from accepting tips, whereas in Japan, tipping is considered impolite.
Since 1974, Switzerland has followed a completely different path. Since then, the rule has been that staff remuneration from guests is “included in the service.” For employers, this means that they must pay their employees the agreed minimum wage and cannot claim that their wages are topped up with voluntary tips from guests. The regulation was laid down in the “Collective Labor Agreement” for the Swiss hospitality industry, which is still valid today. However, despite this regulation, many Swiss continue to tip.
It is often said that tips were abolished with the collective labor agreement of 1974. However, that is not the case. In fact, this regulation merely ensures that employees in the hospitality industry are no longer dependent on tips to earn a minimum wage. This also applies to other services such as taxi rides, hotel services and hairdressers.
If you give a tip to show appreciation, this is now not referred to as a “tip,” but as an “overtip,” i.e. an extra payment.
Surveys clearly show that the Swiss like to tip even without an express obligation to do so. In a survey in 2022, for example, a full 84.9% of respondents said they added a tip in restaurants. Many people want to express their appreciation and satisfaction with the service in this way. Others are happy to leave a “small gratuity” because it is a tradition – or because the income of the service staff is considered comparatively low.
The tipping culture can look different in different regions of Switzerland. The exact size of a tip and in which situations often varies greatly. As a general rule, a tip is normally around 10%. Another popular approach is rounding up to the next-highest amount. When to choose which method is often subject to unwritten social rules.
Traditionally, tips are often given in cash. This way, you can be more confident that the money will reach the service staff. But card payments are becoming increasingly popular, meaning that tips are also transferred electronically. Many card readers already include an additional step where you can add a tip. If this is not the case, you can either say directly that you want to pay more or pay the tip in cash.
A cash tip is technically undeclared income. You pay for the services of the employees, who do not have to report or pay taxes on this amount. Until now, employers also never had to record the amounts on their books. The payments were made to the service staff tax-free and without burdening the business.
If you pay digitally now, the tip will also be recorded and show up on the accounts. According to the Zurich tax office, tips must be taxed if they make up a significant part of salary. The current limit for this is 10%. Cash tips make it almost impossible to check whether this limit is reached. Only digital payment makes this possible.
As a result, many employees who receive tips digitally pocket less of the income they earn because it has to be taxed. However, in the long run, the taxes paid can still be positive, as the higher total wage means higher contributions to health insurance funds and therefore a higher pension in old age or higher benefits in the event of unemployment, illness or accidents.
Since the 1970s, financial appreciation of service personnel and services rendered has been included in wages as a service charge. Nevertheless, many Swiss people choose to give an “overtip.” The most important rule of thumb is that it is better to leave no tip at all than to leave a negligible amount. In general, you should always be prepared to pay 10% of the actual amount on top, or at least round up to a full franc. If you follow these unwritten rules, you will also make yourself popular with staff.
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