The tipping culture in Iceland: are you expected to tip in Iceland?

Tipping etiquette can be a minefield. There are such significant differences when it comes to what’s considered normal and acceptable between countries that it’s easy to trip up – even if you’re a seasoned traveller. To add another layer of complication to the issue, common practice can change over time as numbers of visitors from different countries alter. So what’s the situation in Iceland? Avoid making a faux pas as you read on to find out whether you should tip or not.

What level of tipping might you expect at a restaurant?

 
In some parts of the world, such as in the United States, it’s become so commonplace for tips to be added on to a customer’s bill that travellers risk causing serious offence if they don’t toe the line. Dine out at a restaurant, and wait staff will ask you to leave a generous tip. Typically it’s at least 10% but more usually 15, 20 or even 25% is considered fair reward for the service you’ve received.

Many European countries are starting to see an increase in tipping requests, though normally not to the same extent as on the other side of the Atlantic. For instance, Brits might feel 10% is a suitable amount to recognise a server who has gone out of their way to be helpful and friendly. Elsewhere, you might simply round up the bill to the nearest euro.

In Iceland, tipping in a restaurant, even a fancy one, is never expected but always appreciated. The cost of the food you’ve just eaten or the drinks you’ve ordered takes any taxes and a service charge into account, though won’t be itemised as a separate amount on the bill.

What about other areas, such as hotel housekeeping or taxi rides?

 
Again, there’s significant variation between normal practice depending on where you are. Stay at some resort hotels and if you choose not to tip your housekeeping staff at the beginning of your stay, you’ll most certainly not receive special treatment. In others, such as Iceland, hotel staff wouldn’t be offended if no tip was forthcoming. The rate you pay for your room – often not cheap – is set high enough to cover wage costs.

Taxis are a similar case in point with expectations varying dramatically from place to place. Hop in a London cab and you’ll get a cheery thank you if you round up the fare. Try to alight from a taxi in Cairo and you’ll be met with animated demands for baksheesh. You won’t be asked for a tip in Iceland if you hail a taxi, but if you’re being ferried around and the driver is doubling as your private tour guide, you could certainly justify giving them some extra cash for their efforts.

One place you definitely wouldn’t be expected to tip is at a spa. Iceland’s known for its pools and geothermal lagoons. While there’s a clearly defined etiquette when it comes to showering (always naked) or taking photographs (never in the changing rooms), there’s no requirement to leave some cash on the table as you leave.

Why doesn’t Iceland have a tipping culture?

 
There’s no national minimum wage in Iceland as what someone’s paid is considered a matter between the employer and each employee. However, collective wage agreements are in place and these protect many workers. For instance, around 27000 Icelanders are members of Efling, one of the country’s largest trade unions. They span a variety of industries, including some that are customer-facing such as hotels and restaurants and transport services.

The agreements in place guarantee members a minimum rate when it comes to earnings. That amount is deemed sufficient to cover the cost of living and workers are therefore less dependent on tips to secure a living wage. As Iceland enjoys a high standard of living and an excellent welfare system, it’s generally assumed that people aren’t going to need to rely on tips to make ends meet.

So can you cause offence by tipping – or not tipping?

 
There are a few countries in which trying to proffer a tip can be considered exceptionally rude. For example, in Japan, workers take great pride in their work and would always strive to offer high levels of service without additional reward. You might find that if you try to leave more money than is asked for you could cause embarrassment and awkwardness – something no one wants.

Instead, in Japan, you’d show your appreciation by thanking someone personally for a job well done. If you stick to what’s expected, you won’t find yourself being chased down the road by someone waving a wad of your cash. A sincere thank you would go down well with an Icelander as well.

But times change and so too do attitudes. In China, for instance, tipping was once discouraged. Now, it’s not the cultural faux pas it once was if a foreign visitor opts to tip. In Iceland, do whatever makes you feel comfortable: you won’t cause offence if you do or if you don’t, so please yourself.

If you’re going to tip, how much is enough?

 
If you notice a tip jar on the counter of a café or restaurant, then as a minimum if you choose to tip, you should pop in at least a 500 ISK note – enough for a coffee, perhaps. By way of comparison, if you’ve had a great experience on an all day tour, you might want to gift a larger amount. If you do, somewhere between 5 and 15% is considered plenty.

It’s always preferable to tip in ISK, though handing over notes in an easily exchangeable foreign currency is the next best thing. What you should never do is leave a tip using coins from elsewhere. While Icelanders can head down to the bank to change up dollars, euros or pound notes, it’s not possible to do the same with coins. Keep them in your own pocket and tip someone who you feel deserves it when you get home. Or don’t. It’s your call.