Dinesh Divekar
Business Mentor, Consultant And Trainer

What is the difference between a gratuity and a tip?
From India, Noida
Dear Neelima,
If you refer to the dictionary then you will find that the meaning of "gratuity" and "tip" is same. The word gratuity has two meanings viz.:
a) a tip given to a waiter, taxi driver, etc. The synonym of this word are tip, gift, present, donation, reward, handout, recompense, boon etc.
b) a sum of money paid to an employee at the end of a period of employment.
Explanation for the meaning (b): - Payment of gratuity is a statutory requirement under the provisions of Payment of Gratuity Act, 1972. Employer must comply with the provisions of this act. Please note that this payment is by the employer and not by the customer.
On checking internet, I found the following article. It may be of interest to you:
https://www.inhouserecipes.com/gratuity-usa/
Thanks,
Dinesh Divekar

From India, Bangalore
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