Tips & Gratuities Pay Checker
Check whether your basic pay meets minimum wage on its own — because tips cannot legally count towards it — and verify your rights under the Employment (Allocation of Tips) Act 2023.
Step 1 — Select Your Age Band
Enter your gross basic pay only — do not include any tips here.
Card tips, service charges, or pooled tips distributed by your employer or tronc.
Cash left directly by the customer (no employer involvement). These are yours to keep and are not covered by the Tipping Act.
NMW Due This Week
£508.40
Based on 40 hrs × £12.71/hr
Your Effective Rate
£12.71/hr
NMW Minimum Rate
£12.71/hr
Tips from Employer
£0.00
Direct Cash Tips
£0.00
Basic pay meets minimum wage
Your basic pay alone covers the legal minimum. Your tips are a genuine bonus on top.
Your basic pay may not meet minimum wage
Tips cannot legally top up your minimum wage. Your employer must pay at least £508.40 in basic pay for 40 hours at your age band. You appear to be underpaid this week.
-
Report anonymously to the Fair Work Agency — gov.uk/pay-and-work-rights
-
Get free advice from ACAS — acas.org.uk or 0300 123 1100
-
You can claim up to 6 years of underpaid wages at an Employment Tribunal.
What Changed in October 2024?
Employment (Allocation of Tips) Act 2023 — in force 1 October 2024
The Act introduced a legal requirement for employers to pass on 100% of tips, gratuities, and service charges that they control or have significant influence over. Previously, some employers kept a portion. This is now unlawful.
Written Policy
Employers who regularly receive tips must have a written tipping policy available to all workers.
Records
Workers can request their individual tipping records. Employers must provide them within four weeks.
Fair Allocation
Allocation must be fair and transparent. Employers may use a tronc system operated by an independent tronc master.
Which Tips Must Be Passed On?
| Tip Type | Example | Covered by Act? |
|---|---|---|
| Card tip added by customer | Customer taps card and adds 10% on the machine | Yes — must be passed on in full |
| Mandatory service charge | A 12.5% charge added automatically to the bill | Yes — if employer has control over it |
| Pooled/tronc tips | Card tips collected and distributed by a tronc | Yes — full amount must reach workers |
| Cash left on the table | Customer leaves coins or notes on the table as they leave | No — goes directly to the worker |
| Cash handed directly to worker | Customer hands cash tip personally to the server | No — employer not involved |
Key rule: if your employer touches the money — processes it through their till, card machine, or bank account — it is covered by the Act and must be passed on. Only tips that go straight from customer to worker with no employer involvement are outside the Act's scope.
How to Request Your Tipping Records
Under the Employment (Allocation of Tips) Act 2023, you have a right to see how tips were allocated to you. Here is how to exercise that right.
- 1
Make a written request
Write to your employer (email is fine) asking for a copy of your tipping records. You do not need to give a reason.
- 2
Wait up to four weeks
Your employer must respond within four weeks of receiving your request. They cannot refuse.
- 3
Review the records
Check that the amount allocated to you matches what you received. If there is a discrepancy, raise a grievance.
- 4
Escalate if needed
If your employer refuses to provide records or the records reveal underpayment, you can take a claim to an Employment Tribunal within 12 months.
How to Complain About Missing Tips
Fair Work Agency
The Fair Work Agency (which replaced HMRC enforcement in 2026) handles complaints about tips and minimum wage. Reports are confidential.
ACAS — Free Advice
0300 123 1100 — Free, confidential advice on tips disputes, pay rights, and how to raise a grievance.
Employment Tribunal
Make a claim for unpaid tips or NMW underpayment. Claims must be brought within 12 months (tips) or 3 months (NMW). Free to apply.
Citizens Advice
Free, confidential advice on work, pay, and employment disputes — online, by phone, or in person.
April 2026 National Minimum Wage Rates
| Age Band | Rate per Hour | Weekly (40 hrs) |
|---|---|---|
| 21 and over (National Living Wage) | £12.71 | £508.40 |
| 18 to 20 | £10.85 | £434.00 |
| Under 18 (school leaving age+) | £8.00 | £320.00 |
| Apprentice (year 1 or under 19) | £8.00 | £320.00 |
Tips cannot count towards these rates. Basic pay must meet the threshold independently.
Frequently Asked Questions
Can my employer use tips to top up my minimum wage?
No. Tips, gratuities, and service charges have not counted towards the National Minimum Wage since 1 October 2009. Your basic pay must meet the NMW on its own. If it does not, your employer is breaking the law — regardless of how much you receive in tips.
What is the Employment (Allocation of Tips) Act 2023?
The Employment (Allocation of Tips) Act 2023 came into force on 1 October 2024. It requires employers to pass on 100% of tips, gratuities, and service charges that they receive or have significant influence over — to the workers who earned them. Employers must also maintain a written tipping policy if tips are received on a regular basis, and must provide tipping records to any worker who requests them within four weeks.
Do I get tips if I work a zero-hours contract?
Yes. The Employment (Allocation of Tips) Act 2023 applies to all workers regardless of their contract type, including zero-hours, part-time, and casual workers. Tips should be allocated fairly and proportionally based on your work.
What should I do if my employer does not pass on card tips?
First, ask your employer for a copy of their tipping records — they must provide these within four weeks. If they refuse or you are still underpaid, you can raise a grievance with your employer, contact the Fair Work Agency (which took over NMW and tipping enforcement from HMRC in 2026), or make a claim to an Employment Tribunal. You may be awarded up to two years of underpaid tips.
Are tips taxable income?
Yes. Tips are subject to income tax and, in most cases, National Insurance contributions. Employer-controlled tips paid through payroll will have tax deducted automatically via PAYE. Tips paid directly by customers in cash are your responsibility to declare to HMRC via Self Assessment if they exceed your personal allowance threshold.
Can my employer keep a share of tips?
No. Since 1 October 2024, employers cannot retain any portion of tips for themselves. They may operate a fair allocation system (such as a tronc) and may factor in role, hours worked, or contribution — but the full amount must reach the workers. Any employer who keeps tips for their own benefit is in breach of the Employment (Allocation of Tips) Act 2023.