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    Merriam Webster
    https://www.merriam-webster.com › dictionary › gratuity

    Gratuity Definition & Meaning - Merriam-Webster

    GRATUITY definition and meaning | Collins English Dictionary
    Collins Dictionary
    Gratuity - Definition, Meaning & Synonyms - Vocabulary.com
    Vocabulary.com
    Gratuity - Wikipedia

    A gratuity (often called a tip) is a sum of money customarily given by a customer to certain service sector workers such as hospitality for the service they have performed, in addition to the basic price of the service.

    Tips and their amount are a matter of social custom and etiquette, and the custom varies between countries and between settings. In some countries, it is customary to tip servers in bars and restaurants,

    A gratuity (often called a tip) is a sum of money customarily given by a customer to certain service sector workers such as hospitality for the service they have performed, in addition to the basic price of the service.

    Tips and their amount are a matter of social custom and etiquette, and the custom varies between countries and between settings. In some countries, it is customary to tip servers in bars and restaurants, taxi drivers, tattoo artists, hair stylists and so on. However, in some places tipping is not expected and may be discouraged or considered insulting. The customary amount of a tip can be a specific range or a certain percentage of the bill based on the perceived quality of the service given.

    It is illegal to offer tips to some groups of workers, such as U.S. government workers and more widely police officers, as the tips may be regarded as bribery. A fixed percentage service charge is sometimes added to bills in restaurants and similar establishments. Tipping may not be expected when a fee is explicitly charged for the service.

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    According to the Oxford English Dictionary, the word "tip" originated as a slang term and its etymology is unclear. According to the Online Etymology Dictionary, the meaning "give a small present of money" began around 1600, and the meaning "give a gratuity to" is first attested in 1706. The noun in this sense is from 1755. The term in the sense of "to give a gratuity" first appeared in the 18th century. It derived from an earlier sense of tip, meaning "to give; to hand, pass", which originated in the thieves' cant in the 17th century. This sense may have derived from the 16th-century "tip" meaning "to strike or hit smartly but lightly" (which may have derived from the Low German tippen, "to tap"), but this derivation is "very uncertain". The word "tip" was first used as a verb in 1707 in George Farquhar's play The Beaux' Stratagem. Farquhar used the term after it had been "used in criminal circles as a word meant to imply the unnecessary and gratuitous gifting of something somewhat taboo, like a joke, or a sure bet, or illicit money exchanges."

    The etymology for the synonym for tipping, "gratuity", dates back either to the 1520s, from "graciousness", from the French gratuité (14th century) or directly from Medieval Latin gratuitas, "free gift", probably from earlier Latin gratuitus, "free, freely given". The meaning "money given for favor or services" is first attested in the 1530s. In some languages, the term translates to "drink money" or similar: for example pourboire in French, Trinkgeld in German, drikkepenge in Danish, drinksilver in Middle Scots, and napiwek in Polish. This comes from a custom of inviting a servant to drink a glass in honour of the guest, and paying for it, in order for the guests to show generosity among each other. The term bibalia in Latin was recorded in 1372.

    The practice of tipping began in Tudor England. In medieval times, tipping was a master-serf custom wherein a servant would receive extra money for having performed superbly well. By the 17th century, it was expected that overnight guests to private homes would provide sums of money, known as vails, to the host's servants. Soon afterwards, customers began tipping in London coffeehouses and other commercial establishments".

    The practice was imported from Europe to America in the 1850s and 1860s by Americans who wanted to seem aristocratic. However, until the early 20th century, Americans viewed tipping as inconsistent with the values of an egalitarian, democratic society, as the origins of tipping were premised upon noblesse oblige, which promoted tipping as a means to establish social status to inferiors. Six American states passed laws that made tipping illegal. Enforcement of anti-tipping laws was problematic. The earliest of these laws was passed in 1909 (Washington), and the last of these laws was repealed in 192…

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    Tipping researcher Michael Lynn identifies five motivations for tipping:
    • Showing off
    • To supplement the server's income and make them happy
    • For improved future service
    • To avoid disapproval from the server
    • A sense of duty
    A 2009 academic paper by Steven Holland calls tipping "an effective mechanism for risk sharing and welfare improvement" which reduces the risk faced by a service customer, because the customer can decide whether or not to tip. Tipping is sometimes given as an example of the principal–agent problem in economics. One example is a restaurant owner who engages servers to act as agents on his behalf. In some cases, "[c]ompensation agreements [can] increase worker effort [...] if compensation is [...] tied to the firm's success" and one example of such a compensation agreement is waiters and waitresses who are paid tips. Studies show however that, in the real world, the size of the tip is only weakly correlated with the quality of the service and other effects dominate.

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    A tronc is an arrangement for the pooling and distribution to employees of tips, gratuities and/or service charges in the hotel and catering trade. The person who distributes monies from the tronc is known as the troncmaster. Where a tronc exists in the UK, responsibility for deducting pay-as-you-earn taxes from the distribution may lie with the troncmaster rather than the employer. The word "tronc" has its origins in the French for collecting box. In June 2008, the Employment Appeals Tribunal ruled in a UK test case (Revenue and Customs Commissioners v Annabel’s (Berkeley Square) Ltd) that income from a tronc cannot be counted when assessing whether a wage or salary meets the national minimum wage.

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    Tipping may not be expected when a fee is explicitly charged for the service. A service charge is sometimes added to bills in restaurants and similar establishments. Attempts to hide service charge by obscuring the line on the receipt have been reported. A service charge, or fee assessed, is determined by and paid directly to the company. The charges may be for services rendered, administrative fees, or processing cost.

    In the United States, criminal charges were dropped in two separate cases over non-payment of mandatory gratuities. Courts ruled that automatic does not mean mandatory. Some cruise lines charge their patrons US$10 per day in mandatory tipping; this does not include extra gratuities for alcoholic beverages.

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