Is tipping getting out of hand? Here are some lessons from other countries

Amid high levels of inflation, many consumers are seeing a rise in requests for gratuities as more businesses ask for tips. In a column for CTVNews.ca, personal finance contributor Christopher Liew offers some background on Canada's tipping culture, while looking at common practices around the world.

In Canada, tipping has long been ingrained in the fabric of our dining and service experiences. For many customers, it’s a simple way to express satisfaction and give service providers a little something extra.

However, a number of Canadians find themselves being asked for more money as requests for gratuities extend to an increasing number of services. As a result, some may question whether this practice has gone too far, becoming more of a social obligation than a reward for good service.

Below, I’ll offer a bit of background on Canada’s tipping culture, examine current practices in other countries, and discuss some noteworthy alternatives to our current tipping model.

In Canada, tipping is often considered more than just a courtesy. In many cities and establishments, it’s become a social norm that can supplement the incomes of service workers. In some provinces, such as Quebec, the minimum wage for tip-earners is lower than their counterparts who do not earn tips. The minimum wage for employees who receive gratuities is $12.20 per hour, while workers who do not receive tips must make at least $15.25 per hour.

In restaurants, it is customary to tip between 15 and 20 per cent of your pre-tax bill, depending on the quality of service. Some customers have noted that even 15 per cent may seem rude to workers, with many tipping prompts starting at 18 per cent and running as high as 30 per cent.

Dining aside, tipping extends to various service industries, such as:

After the closures of restaurants and other public spaces during the COVID-19 pandemic, a survey conducted by Restaurants Canada in April 2022 found that nearly half of Canadians were tipping a higher percentage of their bill when dining at restaurants in person, compared to before the pandemic. Based on the survey, they were likely doing this out of sympathy and excitement over the return of public dining.