According to news wire MTI, the agency noted that the National Economy Ministry had recently proposed capping service fees at 15% for private individuals and 20% for corporate functions.

Hungarian Tourism Agency head László Künnyid said the higher cap on service fees for corporate functions would raise waitstaff’s remuneration and contribute to employee retention.

He added that the 15% cap on service fees for private individuals could boost the competitive position of smaller, family-owned businesses.

A ministry proposal requiring financial institutions to make technical changes allowing guests to tip with their bank cards, while the government exempts tips from taxes, will improve employers’ cost optimisation, Könnyid said.

He added that tips were an “important motivation” for waitstaff.