Regulations aim to redefine the status of service charges in the calculation of the average hourly pay rate. Specifically, service charges will no longer be considered as a factor when determining the hourly pay rate for employees in certain sectors covered by the Payment of Wages (Amendment) (Tips and Gratuities) Act 2022. The sectors affected by this reclassification include hotels, cafes, restaurants, bookmakers, casinos, hairdressing, and others. This change ensures that employers in these sectors cannot include service charges when calculating an employee's hourly pay rate in accordance with the National Minimum Wage Act 2000.