Here are the rules on service charges under DOLE Department Order No. 242, series of 2024:
- All service charges must be distributed, completely and equally, to all employees.
- Distribution is based on actual hours or days of work or service rendered.
- Distribution must be made once every two weeks or twice a month at intervals not exceeding 16 days.
- If there’s an increase in minimum wage, the shares in the service charges are not to be included in the computation of the new minimum wage.
Employees here refer to all employees (except managerial employees) regardless of their position, designations, employment status, or method by which their wages are paid.
This rule applies to all establishments that collect service charges for work or services they offer, such as hotels, restaurants, lodging houses, nightclubs, cocktail lounges, massage clinics, bars, casinos, gambling houses, and sports clubs.
