We need to stress that Bali doesn’t have much of a tipping culture and that service workers generally don’t expect tips but if you’re wondering how to deal with tips in beach clubs or what the service charge is all about, we’ve got you covered.
Our guide explains how the total bill is derived in Bali and then how to tip staff so that you can ensure they get a reward for excellent service that they can keep.
The Total Bill In Bali’s Beach Clubs: The Components Of What You Pay For
The total cost you’re going to pay in a beach club can feel a touch confusing but as long as you understand how the bill works here, you can be pretty certain of how much you will need to clear your tab at the end of the day.
- The Entrance Fee – not all beach clubs charge an entrance fee. Of those that do, most will extract this fee on the door but some may add it onto your tab. You should ask whether the beach club has an entry charge and what you get for that charge. We’d also ask that you consider whether you really want to pay $10-$20 USD ($15-$30 AUD) just to walk in the door of a venue and borrow a towel? If not, go somewhere you can get in for free.
- Food, Drinks and Tobacco – you will, of course, be required to pay for anything you consume inside the beach club. This will normally consist of food from the restaurants, drinks from the bar and any tobacco products you get through (shisha is very popular at some beach clubs).
- Other Services – many venues will charge for towel hire, locker use, water sports equipment, etc. while others may waive these fees based on your minimum spend or because you paid an entry fee. Always ask what something costs before accepting it or using it, “I didn’t know I had to pay for a towel” won’t get you a discount on the bill.
- Minimum Spend – most beach clubs require you to commit to a minimum spend if you want to sit on the “furniture” (which may be a sun lounger, a daybed, a sofa, or just a plain old seat). This common practice ensures that the club remains economically viable. The majority of beach clubs have some “free” seating (you’ll still need to eat and drink to sit there, mind you) but the best seats tend to have a minimum spend. If you expenditure on food, drinks, tobacco and other services is below your agreed minimum spend – you will pay the minimum spend rather than the amount you actually consumed. The moment you exceed the minimum spend limit, you will only pay for your consumption there are no charges added to the bill beyond that.
In addition to the charges that you’ve incurred above, there are two other elements of the bill at nearly every beach club in Bali (the exception being small local warungs that are ambitiously calling themselves beach clubs – these businesses do not have to itemize the following two items, but are still charging them):
- Tax – this is a flat 10% added to every restaurant and bar bill in Indonesia. It allows you to see that you’re contributing to the development of the nation. It also means that because the amount is itemized, it’s easy for the tax inspector to ensure that a business is paying the amount that it owes.
- Service charge – the service charge is usually between 7% and 10% but we have seen it go as high as 12%. This is a mandatory charge though businesses have some freedom to set their own service charge threshold. The business is required to collect this fee from all paying guests and then to distribute it among their staff every pay period.
These charges are usually detailed on the menu at the bottom of every page. It’s worth familiarising yourself with these charges before you order as they can add up quickly.
If you’re paying 10% tax and 10% service charge then a 200,000 IDR meal is really 240,000 IDR. A 120,000 IDR cocktail is 144,000 IDR when the bill comes and so on.
This probably doesn’t matter if you have plenty of disposable income, beach clubs are usually cheaper than eating and drinking in most Western nations, but if you’re on a tight budget – you should keep an eye on the “hidden charge” before your bill arrives.
Does The Service Charge Really Go To The Staff?
We hear rumours of places that don’t give the service charge to their staff but we’ve never encountered them.
Most beach clubs pride themselves on good service or even exceptional service and they want their staff to stick around.
There’s also a legal requirement to pay these fees to staff and the Indonesian Labour Courts tend to take a dim view of employers cheating their staff. Locals are quite aware of their rights in this respect.
So, yes, in our view, the service charge is paid out to staff. At our favourite beach club, FINNS, we spoke to a manager about this.
He confirmed that they pool the service charge from all customers and then pay these “tips” to all wait staff and other service staff (though not management) in an equal share each pay period.
The FINNS manager also wanted to stress that while their staff do not expect tips for great service (because of the service charge) if a guest leaves a tip (whether it’s a small tip or a large tip), it is paid out directly to the member of staff who receives the tip.
If a tip is made using a credit card, the beach club is allowed to deduct a small percentage from the tip to cover the costs of processing the card payment. Otherwise, the tip goes to the server.
Can I Refuse To Pay The Service Charge?
No. While in much of the West, this charge is purely optional. In Indonesia, it’s a legal requirement and you must pay even if you feel that the service was subpar.
Refusing to pay might lead to getting arrested and even having to pay a fine. It’s not the end of the world to pay the bill and walk away, even if you might be a little more strenuous in your objections at home. Don’t ruin your family holiday over a few bucks.
So, What About Tipping At Beach Clubs In Bali?
Generally speaking, there’s no requirement to tip here in Bali at all. From Taxi drivers, private drivers, tour guides, housekeeping staff, and hairdressers, to waiters in local restaurants and bars, there is simply no expectation that you will hand over a tip at the end of the day.
(There is one exception to this rule – staff in spas and massage centres, tipping is quite customary in those places and the person doing the work, needs the money in order to make a living).
So, visitors to a beach club are under no obligation to leave a tip. You will not be given a hard time anywhere on the island for not tipping in beach clubs.
However, if you want to leave a small tip for good service, it’s always welcome and most of the service staff are on low wages where tips will make a real difference to their quality of life.
In most instances, it’s enough to round the bill up to the nearest 10,000 IDR or 100,000 IDR if you’re feeling particularly generous and there’s no need to calculate the tip as a percentage of the bill.
A tip of 50,000 IDR (that’s about $3 USD or $5 AUD) would be considered generous by most people in Bali. Don’t forget, you’ve already paid the service charge, so there’s no need for anything beyond a small tip.
Are Tips Appreciated In Bali?
Very much so. While no one expects tipping, locals love it when you tip. Wages aren’t the highest in Bali and a small tip can go a long way for someone.
So, yes, tips are appreciated in Bali as they are in most service led business on the island.
FAQs
Do You Tip At Bali Beach Clubs?
You are not required to tip in any of Bali’s beach clubs. You will find that all services and products you buy have a charge for service already allocated to them (by law).
So you are paying a tip as a standard part of paying the bill in Bali.
Is $100,000 A Good Tip In Bali?
We hope you mean 100,000 IDR (which is about $6 USD or $10 AUD) rather than $100,000. As $100,000 is a spectacular tip anywhere on the planet. In fact, if you want to support our work on this site, we’d love a $100,000 tip. We can be persuaded to take Bitcoin in this instance. 😉
But seriously, yes, 100,000 IDR is a good tip in Bali. That’s actually more than the minimum wage (93,111 IDR) for a day on the island!
And while most beach club workers make more than minimum wage, very few service staff are making so much money that they’d turn their noses up at a generous 100,000 IDR tip.
Where Do You Have To Tip In Bali?
Tipping isn’t a standard for service workers in Bali, so they don’t expect tips. Private drivers, tour guides, taxi drivers, hairdressers, waiters in restaurants or beach clubs, hotel workers, bar staff, etc. do not expect tips.
The only service where a tip is customary is massage in a spa. You are expect to leave a tip for the masseuse and they rely on this money to make enough to live on.
Final Thoughts On Leaving A Tip In Bali’s Beach Clubs
Tipping in Bali is not a the standard thing and while it’s always appreciated when someone leaves a tip in a beach club, it’s not expected.
There is a service charge that functions as a tip and we’d tend to leave a tip only when someone goes over and above the basic, excellent, standard of service that you can find in Bali.
