New Quebec tipping rules start May 7

Consumers are set to pay less in tips when based on percentage, notably at restaurants and bars, in Quebec as of May 7.

Starting Wednesday, tipping options in Quebec must be calculated on the price before Quebec sales tax (QST) and Canada’s Goods and Services tax (GST). 

This means that if an item costs $100 before tax, the tipping options cannot be calculated on the additional QST (9.975 per cent) or the GST (5 per cent) which has been a common practice in the province by many merchants.

The new rule will result in consumers being presented with lower tipping amounts with merchants who had previously based their tip percentage on a calculation using the price after tax.

Montrealer Alexa Giubilaro agreed with the proposed changes.

“I think it makes sense because taxes are one thing and tipping for a service is different so I think it would make sense to separate the two,” she said.

While consumers may save some money, workers in industries such as bars and restaurants will receive a smaller tip if tipping percentage patterns remain the same.

“I feel like it will definitely negatively affect servers as a whole because you’re tipping less,” said Tyler Muehleisen, server at the restaurant Burger Bar Crescent.

“We really do depend on the tips to make a living so with it being less, like it’ll just affect my yearly income and everyday life,” Muehleisen said.

The minimum wage for tipped employees in Quebec is $12.90 an hour.

Another Montreal diner, Rena Byer said she might increase her tip to offset any losses in income to restaurant workers due to the new calculation method.

“I feel like the servers do work very hard so whatever gives them better compensation, I don’t have a problem with tipping them a little bit more,” she said. 

The tax calculation method is one of a few modifications on tipping in the province included in the CAQ government’s Bill 72 coming into effect on May 7.

The new rules also state that the consumer must have the option to determine the amount of the tip as well as predetermined options.

The tipping options must also be presented in a uniform manner, they cannot include elements that will incite the consumer to favour one tipping amount over another.

Morrie Baker, owner of Burger Bar Crescent, said that the card readers they used already gave the diners the option to pick from a percentage choice or add a custom tip amount and welcomed that being formalized through the law.

“I think that that’s a good idea. Let the people give what they feel the server deserves,” he said before adding “And, know this people, that your server depends on those tips and they appreciate the more that you know and tip generously.”

Martin Vézina, vice president of public and government Affairs at the Association Restauration Québec, said that certain restaurants may need a few more days to update their payment systems to comply with the new rules.

“What we have seen now is that it depends on your supplier. You can have a simple download to do. It can be only pushed from the cloud and it can be done on the night. But some also need to change their terminals and they will need to order new ones.”