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To avoid all the problems mentioned below, ALL tips MUST be left in CASH. The management gets nothing BUT the staff gets it all.
Hungarians normally give tips when eating out, having a drink at a bar, or when using a taxi. The tip is usually 10% of the price. It is considered rude if you don't give a tip to the waiter. It means that you were absolutely dissatisfied with the service.
Keep in mind that tipping in itself often does not reach waitstaff or bar personnel. The management of many Hungarian restaurants and bars or pubs will often keep the tips to themselves and not share it with wait staff except as a way to pay their salaries. In short, ask if the tips go to the worker or the owner. If it goes to the owner, save the money and leave a kind word, or find a different place to spend your time and money. Some staff have been ordered to lie if asked. If the tip goes into the till and not into a jar or the worker's pocket, then eat, drink or ride elsewhere.
Some have mentioned rude service and advised others not to tip at all. In general, service workers in Hungary vary as much as they do anywhere else. Tipping the rude or inattentive is not mandatory nor expected. The above point about tip proceeds not being allowed for staff can contribute to this "attitude" issue. Do not frequent "owner-tipping" locations if you can avoid them.
In Hungary, many businesses have begun to add a service charge to the bill. These almost universally go to the ownership and NOT the service workers. Unless the location is essential, the food too good to find elsewhere, and the staff extremely pleasant, consider spending your money for a more satisfying and less expensive option in a similar place.