Do tips count towards minimum wage in the UK?

Do tips count towards the minimum wage in the UK?

In the UK, tips and gratuities are not/ should not be included in the calculation of an employee's minimum wage. Employers are required to pay their employees at least the National Minimum Wage (NMW) or the National Living Wage (NLW) for their age, regardless of any tips or gratuities they may receive.

23 and over 21 to 22 18 to 20 Under 18 Apprentice
April 2022 (current rate) £9.50 £9.18 £6.83 £4.81 £4.81
April 2023 £10.42 £10.18 £7.49 £5.28 £5.28

However, it's worth noting that some employers may have a "tronc" system in place, which is a way of distributing tips and gratuities among employees.

Interestingly, the term tronc comes from the French “tronc des pauvres” which were wooden boxes left in French churches to gather alms for the poor of the parish.

Tronc systems must be fair and transparent, and employees must be informed about how the tronc works and how the tips are distributed. It is also an employer's responsibility to make sure that the tips and gratuities received by employees do not result in their pay falling below the NMW or NLW.

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Last updated on 24 January 2023