Long ago, life was simple. If you could afford to dine out, you just paid your bill and left. But as society has become more affluent, it has also become more complicated and now you are expected to tip as well.

And without the hard rules that govern the practice in the US, for example, tipping has become a source of embarrassment and confusion for many Irish people.

The common practice in hotels and restaurants of including a service charge in the bill has led to confusion for many - do they have to pay it if they are not happy with the service? Does the money go to the staff or does the employer use it to pay the wages?

Others are unsure how much to tip - perhaps 10 per cent is too little? But a 17.5 per cent service charge is surely too much? Should you tip your hairdresser? And what about taxi-drivers, hotel porters and the lounge staff in your local pub?

To start with, Mr Gerry McCoy, president of the Restaurants' Association of Ireland (RAI) and owner of the Red Bank restaurant in Skerries, has some simple advice for consumers. "If service was bad, don't tip. Don't even pay the service charge if there is one but call somebody over and say this wasn't good enough," he says.

The RAI, like most other employers' organisations, does not tell customers how much to tip, arguing that this is at the discretion of the consumer and depends on the quality of service and wealth of the individual.

But the mood of its membership is increasingly moving against service charges in the belief that they add to the confusion surrounding the whole tipping process, Mr McCoy says.

However, the association, which represents 500 of the 2,000 restaurants throughout the State, says those of its members who do impose a service charge are obliged to pass all of it on to staff. To do otherwise, he says, is reprehensible and gives the industry a bad name.

SIPTU is in firm agreement on this point. The union is in no doubt that firms which do not do so are taking money under false pretences. It is very concerned at reports that some firms are using the service charge to subsidise their wage bill. Mr Frank O'Malley, secretary of the Hotels, Restaurant and Catering branch of SIPTU, says service charges were introduced nearly 50 years ago to replace tipping. He remains a fan of the system, pointing out that it ensures that staff assigned the good tables in restaurants, for example, are not at an unfair advantage or that young, good-looking staff do not fare better than others.

Mr O'Malley says that in unionised firms, a shop steward is charged with monitoring the service charge "point" each week. He advises employees in firms where there is no union to work out a system among themselves to monitor the amount collected in service changes and ensure that the money is distributed among them.

"I don't think it's fair and reasonable in general to say `I don't get the service charge' so the customer pays on the double," he says. However, he admits that it is a very complex area. "The whole service charge system needs to be looked at and reviewed," he says. "It's a very tricky area."

The Office of the Revenue Commissioners also has an interest in the area. If the service charge is passed on to staff, no value-added-tax (VAT) is levied on it but if all or part of it is retained, it is subject to VAT.

From the consumer viewpoint, you should not have to pay a tip on top of a service charge unless you are really bowled over by the service and want to do so. If you suspect the service charge is not going to staff, ask and pay the charge directly to those who have served you.

Meanwhile, tipping is a grey area in other sectors as well. Mr John Ussher, president of the Irish Taxi Drivers' Federation, says that it is common practice to tip taxi drivers. Some people tip 10 per cent although many tend to round up the fare, leaving the driver £5 on a fare of £4.60, for example.

Mr Ussher notes that Irish people and English visitors tend to be the best tippers, better than tourists including the Americans while Australians are least inclined to tip, he says.

Hairdressing salons are another area which cause confusion for many. Mr Philip Rochford, President of the Irish Hairdressers' Federation (IHF) and owner of Blades hair salon in Wexford, believes that whether or not people tip depends very much on the quality of service. If the service is good, people are more inclined to tip, he says. Generally, tips vary between £2 and £5, although some people leave £1 and some don't tip at all.

Hotels often have a service charge which is pooled and divided up among the different types of staff although many of those with direct contact with guests - such as doormen, porters, waiters, barmen and house assistants - get tips on top of that.

"It can vary from 50p to £20. It all depends on what hotel you're talking about," one industry source says.

In pubs, it is not uncommon for customers to buy a drink for a barman who has looked after them well all evening - the barman can then decide whether to have one at the end of the evening or to keep the cost of the drink.

Meanwhile, the new breed of lounge staff - who take your order to the bar and return with your round of drinks - generally get the loose change from the cost of the round, according to a spokeswoman for the Vintners' Federation of Ireland. "They are usually young people who are grateful for whatever they get," she says.

At the end of the day, consumers have to employ common sense in deciding how much to tip. It may be unfair to withhold the service charge or tip for poor service from staff rushed off their feet because of bad rostering decisions by management. But most in the service industry agree that rude or incompetent service does not deserve to be rewarded.

"You shouldn't have to demand good service. It should be given," Mr Rochford says.