Þjónustugjaldi

Þjónustugjaldi is the Icelandic term for a service charge, a fee added to a customer’s bill by a business such as a restaurant, hotel, or catering service to cover the cost of service. It is usually presented as a percentage of the total bill or as a fixed amount and can be mandatory, included in the price, or optional depending on local policy or legislation.

The service charge differs from a tip (gratuity) in that it is typically collected automatically and is intended to compensate staff for the service provided. Tips are voluntary payments made at the discretion of the customer and are often distributed differently depending on local practices and employer policies. In places where a service charge is imposed, it is common for the funds to be pooled and distributed among service staff, though policies vary and some portions may be retained by the business for operational costs or taxes.

Contexts and practices vary by country and establishment. Service charges may be disclosed on menus or receipts, and transparency about how the charge is allocated to staff is often considered best practice. Some critics argue that mandatory charges can reduce incentives for high-quality service, while supporters contend that they help ensure stable wages for workers, especially in industries with fluctuating tipping patterns.

Legal and economic considerations include consumer protection rules, wage laws, and tax treatment of collected charges. Clear communication about whether a service charge is included, how it is distributed, and whether customers may modify or remove it helps prevent confusion and disputes. See also tipping and gratuity.