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Glossary/Gratuity

Gratuity

Tipping is another term for gratuity appreciation given by a customer or employer to an employee or service provider in appreciation of satisfactory services rendered. Besides the set price of the goods or services rendered, gratuity is often considered as an addition that is not mandatory or necessitated by law. The most widely practiced kind of gratuity are tips given to waiters at the restaurants, housekeeping personnel in the hotels, taxi drivers and hairdressers. Sometimes employers can give tippings for the staff members just as a sign of gratitude for their hard work, loyalty and years of service especially when one of them retires or leaves the company.

Example of Gratuity

Imagine John, a foodie, enjoys a wonderful dining experience at his go-to restaurant and decides to tip his waiter for his excellent service offered during the meal. John appreciated the waiter's professionalism, friendliness, and efficiency. He rewarded him by a 20% tip on the bill amount, showing his gratitude of providing excellent service to him. This gratuity is both a concrete and symbolic recognition of the waiter's hard work and a way to increase their earnings above their basic salary. For instance, take the case of Sarah who has decided to retire after 30 years of diligent service at her organization. As a proof of gratitude and appreciation of her performance, her employer gives her an award which is equivalent to one month’s pay. This mention of a gratuity payment reciprocates Sarah's steadfast service and tenure with the company and offers financial support as she goes into retirement. Gratuity remunerations convey altruistic sentiments, benevolence and gratitude in both customer-service and job fields.

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