The method for determining the additional payment added to a service charge, typically in industries such as hospitality, involves a mathematical process. This calculation usually begins with a percentage applied to the pre-tax cost of the goods or services received. For instance, if the bill is $100 and a 15% addition is desired, the resulting value is $15, yielding a total payment of $115.
Proper computation of this supplemental payment ensures fair compensation for service staff. It also allows customers to appropriately acknowledge satisfactory or exceptional service. Historically, the practice stems from customs of expressing appreciation for services rendered and has become a standard component of transactions in many sectors.