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Guide for Ireland

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Tips and service charge split calculator for Ireland

Updated 28 October 2026 · 3 min read · By the ShiftComplete team

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The short answer

Under the Payment of Wages (Amendment) (Tips and Gratuities) Act 2022, card and other electronic tips, and anything called a service charge, must be shared fairly among staff and the employer can't keep a share (beyond tax, direct costs such as card fees, or a fair share where the owner does the same work). Splitting the pot by hours worked, with optional role points set out in your displayed tips policy, is a common fair method.

Split a pot of card tips and service charges between the team. Everything runs in your browser: nothing is sent or saved.

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Enter the tips and at least one person.

What the 2022 Act requires

Since 1 December 2022 the Payment of Wages (Amendment) (Tips and Gratuities) Act 2022 has set the rules for tips in Irish pubs, restaurants, cafés and hotels:

  • Electronic tips must be shared fairly. Card, app and other non-cash tips go to staff. The employer can't keep a share, except for tax, the direct cost of distributing them (such as card fees) or a fair share where the employer regularly does the same work as the staff to a substantial degree.
  • Service charges count as tips. Anything called a service charge, or anything a customer would take to be for the service, must be distributed like an electronic tip.
  • Tips can't top up pay. You can't use tips to make up someone's contractual rate or the minimum wage.
  • Display your policy. Show how tips, service charges and cash tips are handled where customers can see it, and put the policy in each new starter's 5-day statement of core terms.
  • Give a statement. Each employee gets a statement of the tips received in the period and their share.

If someone thinks the split is unfair they can complain to the WRC within 6 months. The WRC looks at seniority, sales, hours worked, full or part-time status, the role in service, whether staff were consulted, and any agreement in place. Consulting the team and writing the method down is your best protection.

Get the hours right first

An hours-based split is only as fair as the hours behind it. ShiftComplete builds the roster from staff availability and, with clocking in switched on, records when people actually start and finish, so you can download hours worked as a spreadsheet with a total per person. It doesn't collect, hold or distribute tips: you pay them out through payroll as you do now. It's €1.99 per active staff member a month after a free 60-day trial, no card needed.

Read the full guide to the Tips and Gratuities Act and what goes in the 5-day statement of core terms.

Frequently asked questions

Can an employer keep part of the tips in Ireland?

Not of electronic tips or service charges, except amounts needed for tax, the direct costs of distributing them such as card fees, or, where the employer regularly does the same work as the staff to a substantial degree, a share that's fair for the work they do. Tips can't be used to make up contractual pay.

Does a service charge have to go to staff?

Anything called a service charge, or anything that would make a customer think it's for the service, must be distributed to staff as if it were an electronic tip. It's an offence to use a term like service charge that suggests staff get it if they don't.

Is splitting by hours the law?

No. The law says electronic tips must be distributed fairly. If a complaint reaches the WRC, the adjudication officer considers factors including seniority, sales generated, hours worked, full or part-time status, the person's role in service, whether staff were consulted and any agreement. Hours worked is one fair basis; points by role can be fair too if your policy says so.

Do we have to tell staff what they got?

Yes. The employer must give each employee a statement showing the tips received in the period and the share paid to that employee. The calculator's output gives you the figures for that statement.

What about cash tips?

Cash tips aren't regulated in the same way, but your displayed tips policy must say how cash tips are handled. Many venues pool them and split them the same way as card tips, which is simplest for everyone.

Sources

Checked 28 October 2026. This guide is general information, not legal advice.

Related guides

Rosters, pay & staffThe Tips and Gratuities Act: what Irish pubs, restaurants and hotels must doThe Tips and Gratuities Act 2022 for Irish pubs and restaurants: card tips, service charges, the displayed notice, tips statements and how tips are taxed.Rosters, pay & staffThe 5-day statement of terms: what every new bar and kitchen starter must getThe 5-day statement of core terms for Irish pubs, restaurants and hotels: the full list including tips, the one-month statement, changes, and a checklist.Free toolsWorking time and breaks checker for Irish rostersFree checker for Irish hospitality rosters: enter a week of shifts to see total hours and spot missing breaks, short rest gaps and long weeks under the OWTA.Free toolsLabour cost calculator for Irish pubs, restaurants and cafésFree labour cost calculator for Irish hospitality: wages, Sunday premium, employer PRSI at 9.15% or 11.40%, annual leave and public holidays, as a % of sales.

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