Deputies propose eliminating mandatory restaurant tipping

In Santo Domingo, a heated legislative debate is unfolding over the future of mandatory restaurant gratuities in the Dominican Republic. While the Senate is deliberating on extending the compulsory 10% tip to takeout and delivery orders, members of the Chamber of Deputies are revisiting a decade-old proposal to abolish the legal tip requirement altogether. The original initiative, introduced in 2011 by former PLD deputy Nelson Guillén, argued that customers face triple taxation: a 16% VAT, the mandatory 10% tip, and additional voluntary payments to staff. Although the bill failed to pass at the time, it has resurfaced amid discussions on digital food delivery platforms. Gustavo Sánchez, PLD spokesperson in the Chamber of Deputies, revealed that legislators are reviewing an updated version of the bill. The proposal aims to eliminate mandatory tips while ensuring fair compensation for employees. Sánchez pointed out that current labor laws, under Article 229 of the Labor Code, mandate employers to distribute tips equally among staff weekly. However, in practice, this system often leads to unequal distribution, raising concerns about whether consumers should bear the responsibility of subsidizing low wages. The debate coincides with the Senate’s consideration of an amendment, supported by Asonahores, to include legal tips for services on digital platforms. Critics argue that this extension would further burden middle-class consumers, who already grapple with multiple taxes and payments. Sánchez also noted that restaurants often benefit twice—by collecting mandatory tips and receiving voluntary gratuities from dine-in customers—highlighting the complexity of the issue.