[UK] Optional 12.5% service charge at Oklava London incorporated into menu prices

Shoreditch restaurant Oklava London has joined a growing movement in the hospitality industry to incorporate service charges into menu prices. In a Twitter post, Selin Kiazim - chef and owner of the restaurant - said that the service charge has always gone to Oklava staff, in full, and went on to say that such charges are necessary for the restaurant’s survival.

Service charges are often distributed through tronc payments made via PAYE and are subject to income tax. But in an employee's furloughed pay calculations service charge, tips and tronc are not classed as wages, meaning some hospitality workers have received only 60 per cent of their normal take-home pay instead of the 80 per cent the Coronavirus Job Retention Scheme (CJRS) intended. The Caterer reports the story and has Ms Kiazim’s comments in full.

Shoreditch restaurant Oklava London has joined a growing movement in the hospitality industry to incorporate service charges into menu prices. In a Twitter post, Selin Kiazim - chef and owner of the restaurant - said that the service charge has always gone to Oklava staff, in full, and went on to say that such charges are necessary for the restaurant’s survival.

Service charges are often distributed through tronc payments made via PAYE and are subject to income tax. But in an employee's furloughed pay calculations service charge, tips and tronc are not classed as wages, meaning some hospitality workers have received only 60 per cent of their normal take-home pay instead of the 80 per cent the Coronavirus Job Retention Scheme (CJRS) intended. The Caterer reports the story and has Ms Kiazim’s comments in full.