No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeArchiveTips taken under the table

Tips taken under the table

While restaurants automatically add a 10 percent gratuity charge to bills, Costa Rican waiters will soon be counting tips as under-the-table transactions.

With the passing of a new law, waiters can no longer count their tips as part of their salary – an action that will affect the benefits and pension plans of all waiters across the country, according to a Legislative Assembly news bulletin.

The money will be untaxed by the government, which may sound like a plus, but the implications are far larger in Costa Rica. At the end of each year, Costa Ricans receive an extra month´s salary, depending on their average monthly wage. So, with a smaller official salary comes a smaller year-end bonus.

Sergio Huertas, a waiter at the San José restaurant Nuestra Tierra, said he liked the idea of the government keeping its hands off the tips, but the reduced salary means a smaller pension.

“When your salary is bigger, you have to pay more official charges,” Huertas said. “Right now, it´s a fictitious salary because it´s not officially registered.”

His fellow waiter, Duclos Villarecía, was happy with the changes.

“For me, it´s excellent,” he said, “because the government and the bank can´t mess with my money as much now.”

But Huertas said in the long run, their pensions will be smaller for the move.

The law drew harsh criticism from the Social and Christian Unity Party (PUSC).

“What´s certain is that this project will create a great injustice that will directly reverberate in families´ incomes, not in the accounting systems of the business owner,” said PUSC legislator Jorge Eduardo Sánchez, according to the news bulletin.

Trending Now

Six Airlines Cancel Routes with Venezuela After US Warning

Six airlines cancelled their routes with Venezuela on Saturday, after the United States warned civil aviation about an “increase in military activity” amid the...

US Launches Operation Southern Spear Against Latin American Drug Cartels

The United States has rolled out a major military effort called Operation Southern Spear to tackle drug cartels across Latin America. Defense Secretary Pete...

Costa Rica Football Federation Dismisses Coach Miguel Herrera

The Costa Rican Football Federation has ended its partnership with Mexican coach Miguel "El Piojo" Herrera after the national team missed out on the...

Costa Rica Claims Second Spot in Global Travel Rankings

Costa Rica has earned second place in the Wanderlust Readers' Travel Awards for the most desirable country in the world. The ranking places the...

Magnitude 4.6 Earthquake Hits Off Costa Rica’s Pacific Coast

A moderate earthquake shook parts of the Pacific coast early Saturday morning, prompting residents in several areas to report light to moderate trembling. OVISCORI recorded...

Costa Rica Willing to Take In Salvadoran Facing U.S. Expulsion

A senior Costa Rican government official has confirmed that the country remains open to receiving Kilmar Abrego García, a Salvadoran man at the center...
Avatar
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Rocking Chait
Costa Rica Travel

Latest News from Costa Rica