Tips and service charges in Brazil: waiters' rights
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Tips and the 10% service charge belong to employees and must be recorded on the work card. They count toward vacation, 13th salary, FGTS and INSS, but not notice or overtime.
Tips, whether voluntary or charged as a service fee, belong to employees and must be shared among them under criteria set by a collective agreement or worker assembly (CLT, art. 457, §§ 3 to 11, added by Law 13,419/2017). The employer may retain part to cover payroll charges and must record on the work card the fixed salary and the average tips.
Quick summary
- Who owns the tip: employees, not the business.
- Retention allowed: up to 20% for Simples Nacional companies and up to 33% for others, to cover charges.
- Work card: record of the fixed salary and the tip percentage or average.
- Counts toward: vacation, 13th salary, FGTS and INSS.
- Does not count toward: notice, night premium, overtime and paid weekly rest (TST Precedent 354).
How it should work
- Sharing follows criteria set in a collective agreement or, without one, a workers' assembly.
- Businesses with more than 60 employees must have an employee committee to oversee the sharing.
- The employer must show the tip amount on the payslip.
- If charging tips stops after more than 12 months, the average of the last 12 months is added to salary, unless the agreement says otherwise.
What is irregular
- The business keeping tips or using them to pay the fixed salary.
- Not recording tips on the work card, which reduces FGTS, vacation, 13th salary and retirement.
- Retaining more than the allowed percentage.
Frequently asked questions
Do customers have to pay the 10%?
No. The service charge is optional for customers. When paid, it belongs to employees.
Do tips count toward FGTS?
Yes. As part of pay, they count toward FGTS, vacation and 13th salary.
Do tips count toward overtime?
No. TST Precedent 354 excludes tips from notice, night premium, overtime and paid rest calculations.
Read more in this series
- Off-the-books pay
- How to read a payslip
- Do bonuses count as salary?
- Index: complete guide to labor rights
Topic: this guide is part of Pay and benefits, with all the guides on the subject.
Official sources consulted
Informational content, updated in October 2026. This does not replace an individual analysis of your case.
Informational content produced by the Human Case editorial team based on official public sources. Does not replace individual advice.
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