The ethics of tipping
Even if a Greek is just having a quick coffee, they’ll usually leave a few coins next to the cup. Especially if it’s a regular spot where they know the server by name, they’d feel uncomfortable leaving without tipping. Until recently, most customer tips – usually in cash – would be pooled together and shared among the servers at the end of the shift. Ideally, kitchen staff should also get a share, though I doubt that happens very often.
What many may not know is that for the past 30 years, there’s been a law to tax tips. However, it was impossible to enforce because the money was cash and didn’t leave a trace. On top of that, no one made a serious effort to go after it, since tips help supplement the low wages of waitstaff and similar workers.
However, with technology – and the increasing use of card payments – things have changed, creating the need for a new tax framework. It wasn’t an easy issue to solve. The government had to consider that some employees receive only a few euros in tips, while others, especially in popular tourist destinations, can earn four-figure sums. Any solution had to ensure tax fairness for other low-income workers while avoiding disrupting labor relations.
The government’s financial team opted for a reasonable solution – allowing tips to be tax-free up to 300 euros per month per employee. Some argue that tips should remain entirely tax-free, but those who prefer can still tip in cash. Personally, even though I now use my card for nearly all transactions, I always keep some cash on hand for tipping. Not just as a gesture of appreciation when I’ve been well taken care of, but, more importantly, as a show of solidarity with private sector workers, many of whom are among the lowest-paid. For some, tips are essential for survival.
