How do you split tips based on hours?

Divide the pool by the total hours worked in the period to get the rate per hour, then multiply by each person's hours. £1,000.00 over 151 hours is about £6.62 an hour; the calculator works it to the penny.

Is a points system fair?

It can be. The Code of Practice lets employers weigh type of role, basic pay, seniority, performance and length of service, which is what points do. Write the points per role in your policy and apply them the same way every period.

What percentage of tips should the kitchen get?

The law sets no percentage. The Code of Practice lists distribution between front of house and backroom workers as a factor; the 70/30 split here is an example, not a recommendation. Whatever you choose goes in the policy.

What do I do with the leftover pennies?

Rounding down leaves a few: £100.00 over three equal shifts is £33.33 each and 1 penny over. Give leftovers one each to the largest fractions, or carry them into the next pool, and say which in the policy.

How to split tips between staff fairly (hours, points, front and back of house)

The simplest fair split is by hours: add everyone's hours, divide the pool by the total, and pay each person their hours times that rate. Points add a weight for role; hours x points combines both; a front/back of house split first gives each side a percentage. On the same £1,000.00 pool and the same five people (an example team, 151 hours in all), the four methods give the part-time server between £94.96 and £188.68 and the head chef between £192.86 and £400.59.

Open the tip split calculator

Four methods on the same pool

Example team: two servers (one part-time), a bartender, a head chef and a kitchen porter, 151 hours in total. Points are an example weighting (head chef 1.5, porter 0.8, everyone else 1), not advice. The front/back of house column gives 70% to the servers and bar and 30% to the kitchen, then shares each part by hours.

Example: £1,000.00 shared four ways (computed with the calculator)
Person	Hours	Points	By hours worked	By points (role weight)	Hours x points	Front / back of house split, then by hours
Server A	35	1	£231.79	£188.68	£207.72	£302.47
Server B (part-time)	16	1	£105.96	£188.68	£94.96	£138.27
Bartender	30	1	£198.68	£188.68	£178.04	£259.26
Head chef	45	1.5	£298.01	£283.02	£400.59	£192.86
Kitchen porter	25	0.8	£165.56	£150.94	£118.69	£107.14

Which method to choose

By hours: easy to explain and check, rewards time on shift. Everyone's hour is worth the same.
By points: a weight per role, ignoring hours. Suits a team on the same shifts; unfair to part-timers otherwise.
Hours x points: time and role together. Most flexible, and the one that most needs the points written down.
Front / back of house: fixes each side's share whatever the hours, then by hours inside each side. Useful when the kitchen is small but you want it to have a set part.

The law asks for a fair allocation and a written policy that says how you allocate, not for one method. Run your own team through the tip split calculator, then put the method in the tipping policy generator.

Pennies, cash and card fees

Every share is rounded down to the penny, so a few pennies are left; the calculator gives them to the largest fractions or carries them to the next pool, and shows which. Card tips, cash put into the pool and service charges go in together, and nothing comes off for card processing: the Code of Practice says tips are passed on without deductions except in very limited scenarios such as income tax. Pay them no later than the end of the month after the customer paid.

Sources

No deductions: Code of Practice on Fair and Transparent Distribution of Tips (published 29 July 2024), gov.uk — https://www.gov.uk/government/publications/distributing-tips-fairly-statutory-code-of-practice/code-of-practice-on-fair-and-transparent-distribution-of-tips-html-version, read on 2026-09-29
Payment deadline: Employment Rights Act 1996 s.27G, legislation.gov.uk — https://www.legislation.gov.uk/ukpga/1996/18/section/27G, read on 2026-09-29
Written policy: Employment Rights Act 1996 s.27I(1) and (3), legislation.gov.uk — https://www.legislation.gov.uk/ukpga/1996/18/section/27I, read on 2026-09-29
Fairness factors: Code of Practice on Fair and Transparent Distribution of Tips, paragraph 23, gov.uk — https://www.gov.uk/government/publications/distributing-tips-fairly-statutory-code-of-practice/code-of-practice-on-fair-and-transparent-distribution-of-tips-html-version, read on 2026-09-29

Frequently asked questions

How do you split tips based on hours?: Divide the pool by the total hours worked in the period to get the rate per hour, then multiply by each person's hours. £1,000.00 over 151 hours is about £6.62 an hour; the calculator works it to the penny.
Is a points system fair?: It can be. The Code of Practice lets employers weigh type of role, basic pay, seniority, performance and length of service, which is what points do. Write the points per role in your policy and apply them the same way every period.
What percentage of tips should the kitchen get?: The law sets no percentage. The Code of Practice lists distribution between front of house and backroom workers as a factor; the 70/30 split here is an example, not a recommendation. Whatever you choose goes in the policy.
What do I do with the leftover pennies?: Rounding down leaves a few: £100.00 over three equal shifts is £33.33 each and 1 penny over. Give leftovers one each to the largest fractions, or carry them into the next pool, and say which in the policy.

Tipping law UK: what employers must do (2026)
The Employment (Allocation of Tips) Act 2023 in one table: fair allocation, no deductions, pay by the end of the next month, written policy, 3-year records.
What is a tronc and how does it work? (UK, with 2026/27 NICs table)
A tronc shares tips through a troncmaster, not the employer: PAYE still applies, National Insurance does not. Monthly NICs saved by pay and tips, 2026/27 rates.

Last updated 2026-09-29. General information and calculations based on the Employment (Allocation of Tips) Act 2023, the statutory Code of Practice and HMRC guidance. Not legal or tax advice.