It had come under pressure from unions and staff and has now announced the change of policy from 6 October.
The chain said a new automated system would be introduced across its 430 restaurants, which employ 10,000 staff.
Tips made by cards will be "fully distributed" among employees, the firm said.
Pizza
Express and others use a "tronc" system, where all the tips are
collected together and distributed evenly through the staff, usually
with about 70% going to the waiters, and the rest given to kitchen and
other workers.
At present, the chain deducts 8% from tips paid by
credit or debit card. The company had said this was a fair cost for
processing the money. However, it prompted protests organised by the
Unite union which seem to have brought about the change of policy.
Richard
Hodgson, chief executive of Pizza Express, said that he wanted to
ensure staff were "properly rewarded for the valuable contribution they
make to our business".
"We have always been, and will continue to be, transparent about our tipping policies," he said.
"We
also agree with calls for greater clarity across the industry in order
to ensure that staff are given a fair deal, and to enable customers to
make an informed choice when it comes to tipping.
"We want people
to recognise that this is a company that values employees and offers
long-term opportunities. I am committed to ensuring that we continue to
work on improving the image of our sector."
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