Gratuity

Gratuity is a sum of money customarily given by a client or customer to certain service sector workers for the service they have performed, in addition to the basic price of the service. It is usually given directly to the worker, particularly in the case of wait staff, bellhops, concierges, cab drivers, hairdressers, and the like.

Overview

Gratuity is a voluntary payment made over and above the amount of the bill and, along with tipping, is a practice followed in many countries. The amount of gratuity is entirely at the discretion of the customer and can be influenced by the quality of service provided.

History

The concept of gratuity originated in 17th century England and was used as a token of appreciation for good service. It later spread to other parts of the world, including the United States, where it became a customary practice in the service industry.

Legal Aspects

In some countries, gratuity is considered part of the worker's wages, while in others it is considered a gift and not subject to taxation. The legal status of gratuity varies widely and is often subject to controversy and debate.

Cultural Differences

Cultural attitudes towards gratuity and tipping vary widely. In some cultures, tipping is considered an insult, while in others it is expected and considered a part of the worker's income.

See Also

• Tipping
• Service charge
• Hospitality industry
• Wage

References

Gratuity Resources
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