Introduction
Service-based industries as we know them–such as beauty and wellness–strongly rely on customer satisfaction. On both sides: customers want better service, professionals and service providers want fair compensation. Another trend here–cash is getting replaced with debit and credit cards, online payments, making it harder sometimes to tip the professional for a job well done.
This is where the collaboration between the premier service business platform (Altegio) and the best tipping solution comes into place. Altegio and EasyTip developed and launched integration between the two SaaS services that facilitates easier and faster use of cashless tipping in client businesses. First launched in the UAE, this feature will also be available to Altegio clients in the EU.
The most obvious reason for such a partnership is further digital transformation of the region and smoothness of business processes which are guaranteed by the two leaders serving the same audience’s needs. Now salon owners, beauty therapists, massage professionals and stylists (and even more) can easily get cashless tips and maximize customer experience.
A smooth online scheduling process, combined with an effortless tipping experience, leads to higher client retention, increased gratuities for professionals, and a more rewarding workplace environment. What does it mean for business in general? Well, reducing administrative errors, ensuring fair tip distribution, and creating a transparent and positive experience for both employees and customers might look like good motivators for a business owner to choose Altegio and EasyTip.
To Celebrate the Collaboration, New Report on Tipping Traditions in the UAE, UK, and Europe Issued
To celebrate this collaboration and provide deeper insights into tipping practices, Altegio has conducted an in-depth investigation of tipping culture across different regions. Let’s see how tipping impacts personal service industries in UAE, UK and Europe. This report explores the role of tipping in various markets, its effect on employee earnings, motivation, and customer retention. For a business owner this news combined with the report is a true finding. Why? Because it can help leverage tipping strategies to reduce employee turnover, increase overall satisfaction (both employees’ and clients) and digitalize the business.
Tipping Culture Across Different Regions
United Arab Emirates (UAE)
Tipping in the UAE is not mandatory but is widely practiced as a sign of appreciation. A tip of 10-15% is a good tradition in industries like salons, spas, and barbershops when the service meets or exceeds expectations. Since many service workers in the UAE, particularly expats, earn modest wages, tips serve as a valuable supplement to their income. In salons, for instance, clients may tip between AED 30 – 40 or around 10% of the bill for services like haircuts or massages. Restaurant tipping is also fairly common, with roughly 90% of diners leaving a gratuity, though the average tip is around 8% of the bill.
United Kingdom (UK)
The UK also has a moderate tipping culture. While it is not an obligation, many customers choose to tip for good service. In the personal care sector, around 67% of salon-goers tip their hairdressers, with common amounts ranging from £5-£10 or about 5-10% of the service cost.
Tipping in UK restaurants is also widely practiced, with approximately 80% of diners leaving a tip. However, the amounts tend to be modest, averaging around 8% of the bill. Unlike in North America, where tipping is deeply ingrained, British tipping habits are more discretionary, and customers are generally not expected to tip for every service.
Europe
Tipping traditions vary widely across Europe. In many EU countries, service workers receive a higher base wage, and tipping is viewed as a small token rather than an obligation. For example, in Germany, tipping is more common, with 56% of customers saying they typically tip their hairdresser. In contrast, tipping is far less frequent in countries like Spain (25%), France (21%), and the Nordic nations (as low as 2-4%).
Culturally, Germans and some Northern Europeans tend to tip more frequently, whereas in France, Italy, and Sweden, rounding up the bill or leaving small change is often sufficient. In restaurants, a large portion of Europeans do not tip at all, and when they do, it’s usually in the range of 5-10% of the bill.
Contribution of Tips to Employee Earnings
UAE
For many service workers in the UAE, tipping significantly enhances their income. A salon employee might earn AED 3,000-5,000 per month as a fixed salary, and client tips of 10-15% amount to a big portion of their take-home pay. Since the UAE has no personal income tax, tips are untaxed, making them a direct financial benefit for employees.
UK
In the UK, beauty professionals often receive a boost from tips, which can add between 30-50% percent to their overall income. Many stylists are self-employed or earn rates well above a basic level, so these extra earnings represent a valuable supplement. For example, a stylist working at a competitive rate may see a noticeable increase in income thanks to generous tips from satisfied clients, making these gratuities an important part of their earnings.
Europe
In Europe, tips generally form only a small fraction of personal service workers’ earnings. Many employees are paid through a mix of salary and commission, and gratuities are considered an optional bonus. In Germany, tips are tax-free, allowing workers to retain the full amount. Meanwhile, in countries like Sweden or Denmark, where tipping is rare, service workers receive high wages and do not rely on gratuities to supplement their earnings.
Employee Motivation and Job Satisfaction
Tipping can be a strong motivator for personal service workers, serving as a tangible reward for exceptional service. A spa therapist in Dubai, for example, may put in extra effort knowing that a generous tip could significantly increase their earnings for the day. Similarly, UK hairdressers often appreciate tips as a sign of client satisfaction, which can improve their morale.
However, an over-reliance on tips can also create income uncertainty, leading to stress and dissatisfaction. In the UAE, where tipping is seen as a bonus rather than a requirement, earnings are more stable compared to highly tip-dependent industries in other parts of the world. In contrast, in Europe, where tipping is less common, employees generally report higher job satisfaction due to stable wages and strong labor protections.
Impact on Business Revenue and Pricing
The main challenge for salons is competition – this is where business gets the most impact. When salon owners foster a tipping culture, employees tend to earn more, which not only attracts top talent but also helps retain the best professionals.
Offering tips leads to better control over costs, as it reduces the pressure to raise salaries due to inflation. This creates a positive feedback loop for the business—more tips, better cost control and stronger staff retention.
Legal Frameworks on Tipping
UAE
The UAE does not have specific laws governing tipping. There is no minimum wage law for the private sector, and tips are considered voluntary gifts rather than part of an employee’s contractual earnings. While some restaurants include a service charge on bills, these fees often go toward business expenses rather than directly to employees.
UK
In 2024, the UK introduced a law that requires employers to transfer every tip directly to workers without deductions, ensuring that gratuities are a true bonus rather than a wage supplement. Under this regulation, tips received by credit card follow clear distribution policies, while cash tips remain the responsibility of employees to report. Additionally, all tips collected and distributed via EasyTip comply with UK standards, which is why many businesses choose EasyTip for its simple, hassle-free approach to managing tip payments.
Europe
European countries generally do not have extensive regulations on tipping. In Germany, voluntary tips are tax-free, while in France, service charges are typically included in restaurant bills, reducing the need for additional gratuities. In Nordic countries, where tipping is uncommon, high wages and union agreements ensure fair pay without relying on customer generosity.
الخاتمة
To make tips fully automated and comply with the most recent standards, connect Altegio and EasyTip. This will ensure high employee satisfaction, smooth customer service and will impact positively on all the administrative routines in your business. Please note Altegio actively operates in the UAE, UK and EU and is present in 95 countries with more than 10000 businesses that use it as a primary software system for customer management, scheduling appointments (both online and offline), business automation, calculating payroll and stock control.
