Service Charge vs. Gratuity

The service charge and gratuity are typically two different things (though they mean the same thing at some companies). The service charge doesn't typically go to the workers as a tip - instead, it could go to the business (though the business can choose to split it amongst employees). The gratuity goes to the employees as a tip.

Definitely check with the venue/caterers as to what the service charge covers. If they use it as gratuity to the employees, then you don't need to tip on top of that. Otherwise, a tip should be added on top of that if you feel a tip was earned.

Here is a website that answers this same question: https://www.womangettingmarried.com/venue-service-charge-include-gratuity/

I would check with your venue and ask them to clarify what the service charge entails. Typically, however, this charge does NOT include gratuity- rather it is a fee for set up, teardown, administrative costs, etc… the “behind the scenes” costs. If that is the case at your venue as well, then yes, you would need to tip the service staff on top of the service fee. And I know exactly what you mean.. the sticker shock is real! We are paying an extra $5,000+ just in service fees, taxes and gratuity for our reception dinner! Definitely make it a point to read all the fine print when it comes to these venues packages. They advertise great prices that sound reasonable, because they are tacking on all these fees on the back end!

It really depends on the venue - some will tell you it covers gratuity; others will tell you it is completely separate. Make sure to clarify with each one you're considering so you know before signing a contract.

It does depend on the venue. We asked our venue and they said that the service charge helped them pay above industry standards to their servers and bartenders and that a gratuity would not be needed on top of that. I would ask clear questions about what each venue sees as a service charge.

A gratuity is a tip that is non negotiable. When you go out to eat, they will include a tip automatically if you have a group of 10 or more. There is no reason to tip on top of that.


A service charge is an administrative fee that is related to the serving staff’s labor. But it doesn’t go toward their paycheck in many cases, though some do. Double check with the venue to find out what they cover.

Always ask the venue/vendor to be transparent in explaining what their charges are for in terms that you can understand.