Hi Scott Most hotel and restaurant workers are on the minimum wage (if they are lucky and have an employer that employs them full time, not part-time to avoid paying even this), which I think is about 560,000Rp a month, but I am not a 100% sure.
Most restaurants & hotels include service charges, or rather so they say, but actually do not pay any or it all to the staff but rather it is deemed part of the employer's money (unlawful, but I reckon 90% of businesses in Bali cheat their staff like this).
It really means a LOT to staff to be given a small (to you) tip directly to them and not part of the transaction for whatever it is you are paying for. I personally refuse to pay service charges to restaurants and hotels as it is NOT mandatory and if the bill says it includes service, you have a legal right to have them remove this element; although they will not be happy in most cases. Then give the money direct to the staff.
Of course you can ask a hotel in advance what their policy is; whether they pay all service charge receipts to their staff (excluding directors and managers on western pay scales) and in equal measure (so the higher wage earners are not given more of the service charge). If they say no, they are thieves in my book, especially now as fuel and basic commodity prices in Indonesia have shot up; a hotel worker taking home basic wage only is not living well to be sure.
Truly, thanks for asking. I wish more people would make sure the smiling Balinese that make their holidays so worthwhile are actually taken care of.
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