Tips at work
Overview
If you get tips at work they do not count towards the National Minimum Wage. You still have to pay Income Tax on tips and may have to pay National Insurance.
How tips are paid
You could get tips:
- directly from a customer in cash or electronically, for example through a mobile app
- as part of your pay packet from your employer
- through a separate system for managing and sharing out tips at your workplace (known as a ‘tronc’)
How your employer handles tips
There is a statutory code of practice on the distribution of tips.
By law, all tips must be given to workers without deductions.
The code of practice has information on:`
- the types of workers and tips covered by the legislation
- how employers can ensure tips are distributed fairly and transparently
- the need for a written tipping policy and accurate record-keeping
- steps for resolving disputes, including escalation to an employment tribunal
Where to get help
Contact Acas if you have a question about tips or the National Minimum Wage.