National minimum wage: code of best practice on service charges, tips, gratuities and cover charges

National minimum wage (NMW) guidance for business in making clear information available to consumers on tips and service charges.



Practical guidance to help businesses give customers clear information on what happens to service charges, tips or gratuities.

Tips, service charges, gratuities and cover charges can not be used to make up national minimum wage pay. Workers entitled to the minimum wage must get at least the national minimum wage in base pay with any tips being paid on top.

This code of best practice aims to improve the information to customers and workers. It has advice for businesses on how to operate in a fair and transparent way and how to give customers enough information to make an informed choice before they leave a tip or gratuity or pay a service charge.