The debate over tipping in the United States has intensified in recent years, with social media posts about disgruntled waiting staff going viral across multiple platforms.
Lillian Price, an animal care worker from Philadelphia, says tipping culture in the US has become “out of control” and simply costs too much.
“You might just be grabbing something to go, and you are expected to tip,” she says, describing the growing pressure felt by everyday consumers.
Price tips 15% at table-service restaurants, but in cities like New York, Boston, Los Angeles and Chicago, a minimum of 20% is now more commonly expected by staff.
For Kate Santos, a waitress at Sanger Hall, a bar in Queens, New York, tips are not a bonus but an essential part of her weekly earnings.
“Servers in New York make $11 an hour, so basically I make my salary off tips,” she says, adding that a bad tipping day directly means a bad financial day for her.
In Iceland, tipping was historically unheard of, but a dramatic rise in American visitor numbers has begun to shift local customs in a noticeable direction.
Official Icelandic data shows American visitor numbers grew from 50,810 in 2010 to 660,114 by last year, with many of those tourists simply choosing to tip as they would at home.
A spokeswoman for Efling Union, the second-largest union in Iceland, says some restaurants are now prompting customers to add a gratuity at the point of payment, irritating local people.
“Generally speaking, Icelanders themselves tend to become irritated when this happens, as they do not consider it reasonable to pay an additional surcharge on top of already high prices when, for example, buying a drink at a bar,” the spokeswoman said.
In the UK, food and drink consultant Lisa Harris says service charges in restaurants are also creeping upward, with a shift from 12.5% to 15% becoming more visible.
“The cost of living is going up in all areas, so it is no surprise there’s tip inflation too,” Harris says, noting the trend is most pronounced in higher-end establishments.
Harris believes restaurants are deliberately leaning on tips to manage rising costs without formally increasing staff wages across the board.
“The UK hospitality industry is on its knees, with restaurant owners being squeezed by VAT, increased minimum wage, national insurance, and increased food and utility bills,” she said.
Michael Lynn, author of The Psychology of Tipping and a professor at Cornell University in New York State, says digital card payment machines are a major driver of the global tipping increase.
The number of UK cafes and restaurants digitally prompting customers to add a tip rose by 78% between 2022 and 2024, according to card reader manufacturer SumUp.
In the US, the low-wage structure for tipped workers dates back to federal legislation from 1938, with tipped employees currently earning as little as $2.13 per hour at the federal level.
In the 2024 presidential election, both Donald Trump and Kamala Harris pledged to cut the tax burden on workers who rely on tips for a significant portion of their income.
Trump subsequently signed a law in July of last year allowing qualified staff to deduct up to $25,000, equivalent to tips received that year, from their annual federal income tax.
Santos, despite the unpredictability of tip-based income, says she prefers the current system, recalling one occasion where she received a $100 tip on a $70 bill.