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What is the difference between a gratuity and a tip?
From India, Noida
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Dear Neelima,

If you refer to the dictionary, you will find that the meaning of "gratuity" and "tip" is the same. The word gratuity has two meanings viz.:

a) a tip given to a waiter, taxi driver, etc. The synonyms 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 the Payment of Gratuity Act, 1972. Employers must comply with the provisions of this act. Please note that this payment is made by the employer and not by the customer.

On checking the 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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