Þjónustugjald

Þjónustugjald is an Icelandic term that translates roughly to service charge or service fee. It refers to a charge added to a customer’s bill by businesses in the hospitality sector, such as restaurants, hotels, and cafes, to cover the cost of service. The charge can be a fixed amount or a percentage of the bill, and it may appear on the receipt separately from the listed prices.

Practices vary across establishments. In some places, þjónustugjald is mandatory and the money is distributed to staff as part of wages; in others, it is optional or discretionary, with the business retaining the charge or distributing it according to its own policy.

Customers in Iceland may also choose to tip voluntarily in addition to or instead of any service charge. Because tipping culture is not universally standardized in Iceland, the presence or absence of þjónustugjald does not necessarily dictate tipping behavior.

Policy and enforcement depend on national and local regulations and employer policies. A business may publicly state how the charge is used and whether it is included in the quoted prices or added at the end of the meal. In practice, the interpretation and handling of þjónustugjald can differ between establishments and regions.