1. Overview

If you get tips at work, they don’t count towards the National Minimum Wage, but you do have to pay tax on them.

How tips are paid

You could get your tips as:

  • cash at the end of a shift or from a customer
  • part of your pay packet
  • an amount that’s pooled and shared between all staff - this is called a ‘tronc’ and the person who looks after it is called the ‘troncmaster’

How your employer handles tips

The government has a Code of Best Practice on tips that says how your employer should handle them.

It’s voluntary - your employer doesn’t have to follow it - but if they do, they should have a policy on tips that includes information on:

  • how tips are distributed (eg if a tronc is used)
  • if cash and card tips are treated differently
  • the name of the troncmaster (if there is one)
  • any deductions taken from tips
  • what happens during leave (eg holidays, sick leave, parental leave)

Where to get help

If you have a question about tips or the National Minimum Wage, call the Pay and Work Rights Helpline:

Pay and Work Rights Helpline
Telephone: 0800 917 2368
Textphone: 0800 121 4042
Monday to Friday, 8am to 8pm
Saturday, 9am to 1pm
Find out about call charges

You can also use the: