Is Tipping Becoming Excessive? Insights from Global Practices

Is Tipping Becoming Excessive? Insights from Global Practices

Tipping has become a growing concern amongst consumers as businesses increasingly ask for gratuities, particularly in light of high inflation levels. Christopher Liew, a personal finance contributor, sheds light on Canada’s tipping culture and explores common practices around the world.

In Canada, tipping is customary in various sectors, including restaurants, hair salons, and taxis. However, Liew notes that the suggested tip amounts have been increasing steadily over the years. This can place a burden on consumers, especially with rising living costs.

Looking at other countries, Liew highlights some valuable lessons. In Japan, tipping is not expected and can even be seen as offensive. Instead, exceptional service is already included in the price of the goods or services provided. Similarly, in Australia, tipping is not ingrained in the culture, and service industry employees receive higher wages to compensate for the absence of tips.

Contrastingly, the United States has a strong tipping culture, with restaurant servers relying heavily on tips as they often earn significantly lower wages. However, Liew suggests that this practice can lead to unfair income distribution and exploitation of workers, as not all employers ensure fair compensation.

Ultimately, the question arises: is tipping getting out of hand? While it is essential to reward exceptional service, the increasing expectation of tips across multiple sectors can create financial strain for consumers.

As the debate continues, understanding tipping practices in different countries can provide valuable insights. Governments and businesses could consider alternative models that ensure fair compensation for workers, without placing an excessive financial burden on consumers.

– Christopher Liew, personal finance contributor.

All Rights Reserved 2021.
| .