Gratuity (Tip)

Gratuity, commonly called a "tip," is an additional payment given to service industry workers as a reward for good service. While technically voluntary, tipping is culturally expected in many industries, especially in the United States.

Standard Tipping Guidelines (U.S.):

• Restaurants: 15-20% of pre-tax bill
  • 15%: Adequate service
  • 18-20%: Good to excellent service
  • 20%+: Outstanding service
• Bars: $1-2 per drink or 15-20% of tab
• Delivery: 15-20% of order total, minimum $3-5
• Taxi/Rideshare: 15-20% of fare
• Hair Salons: 15-20% of service cost
• Hotel Housekeeping: $2-5 per night

Why Tipping Exists: In the U.S., many service workers earn a lower base wage (as low as $2.13/hour for tipped employees) with the expectation that tips will bring them to minimum wage or higher.

When to Adjust Tips:

• Tip More: Exceptional service, complex orders, busy times, regulars
• Tip Less: Poor service (10-12%), but speak to management for serious issues
• No Tip: Only for egregiously bad service or policy violations

Mandatory Gratuity: Some restaurants add automatic 18-20% gratuity for large parties (usually 6+ people). This is legal and should be clearly stated on the menu.

Tipping Internationally: Tipping customs vary dramatically by country. Research local expectations before traveling.