France: towards tax-free tips and paid directly to bank cards

“In the coming months”, the dematerialized tips can be paid directly to the credit cards and will not be taxed.

The reform was revealed by Emmanuel Macron while he was visiting the International Restaurant, Hotel and Food Fair (SIRHA) on Monday, which opens in Lyon.

“We have decided that tips paid by credit card would be free of charge for employers and tax-free for employees” specified the president who hopes with this reform “to add purchasing power” to the employees of the sector.

Being able to add the tip directly to the bill paid by credit card, without it being taxed, will “help attract more young and old to tell them: you can earn more than the salary and the bonus that I pay you “, concluded the Head of State, who regularly deplores the unfilled jobs in this sector, a headache for restaurateurs.

“This is something that we have been asking for several years, many countries are doing it. It will encourage young people to come into our professions, boost service, and encourage customers to recognize the quality of service,” said Roland Héguy, president of Umih, the main employers’ organization in the hotel and restaurant industry, told AFP.

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