What's Gratuity All About?

Gratuity is another word for tipping, which refers to an extra payment given to service workers as a token of appreciation for good service. It is commonly seen in industries such as restaurants, hotels, transportation services, hair salons, and food delivery.

How Does It Work?

People usually tip 15–20% of the bill at places like restaurants. The gratuity can be added when paying the bill, either in cash or through a card payment. For larger groups, some restaurants may add automatic gratuity or a service fee to the final bill to ensure fair compensation for the staff.

Tips represent a significant portion of income for many service workers, particularly in hospitality industries where gratuities are commonly expected.