Gratuity

A tip (also known as a gratuity) is that amount of payment to certain service sector professionals which is in addition to the advertised bill or fee. These payments and their size are a matter of social custom. In India, Middle-East Asia and Egypt, tips are known as Backshish or Bakshish.

There are no universal rules or obligations concerning whether to tip (tip is both a noun and a verb), who to tip or how much. Tipping varies from culture to culture and by service industry. In some situations tipping can be considered rude or demeaning. In other situations it can be considered very stingy not to give a tip. Giving a very small tip can be considered worse than giving nothing, and can be used as a deliberate snub.

Some establishments forbid their employees to accept tips. Others pool tips and divide them to include employees who lack customer contact. In some jurisdictions, tipped workers qualify for a lower statutory minimum wage from the employer, who must make up any deficiency in tips.

Bribery may be disguised as tipping (leading to social customs such as police officers never accepting tips to combat this pattern).

Etymology

The Oxford English Dictionary states that it is derived from the English thieves' slang word tip, meaning “to pass from one to another." The notion of a stock tip or racing tip is from the same slang.

Another possible source for this term is a concept from Judaism that it is a chiyuv (obligation) for a seller to "tip the scales" in favor of the customer. The Torah says, "Nosen lo girumov (Give to him a tip)." For example, if your customer has asked for three pounds of onions, you should measure out the three pounds plus one extra onion, tipping the scale in his favor [1].

An urban legend states that the word "tip" is an acronym for terms such as "to insure prompt service", "to improve performance", and "to insure promptness". However, in addition to using "insure" when "ensure" is meant, this etymology contradicts the Oxford English Dictionary [2] and is probably an example of a backronym or apronym.

Tipping by region

Australia

In Australia, tipping is traditionally not common and, beyond the hospitality industry, almost all service providers will never expect a tip. Employers pay a sufficient wage and do not expect employees to supplement their income with tips. However tipping is becoming increasingly common at some establishments (particularly restaurants, cafes, upmarket hotels, and nightclubs) in cities such as Gold Coast, Sydney or Melbourne, for good to exceptional service. In recent decades, tip jars have increasingly become common in hospitality establishments, even in suburban areas of these cities. However, even in these establishments, tipping is often still seen as being an optional personal choice.

Austria

In Austria, waiters receive sufficient wages. Tipping is however very common and although legally not mandatory it is often considered as socially obligatory. Giving 5% to 10% of the total amount is common, more signals exceptionally good service. Paying a multiple of a Euro is usual, for low sums the amount paid is often a multiple of 50 Cents (i.e. a bill of Euro 7.80 can be paid as Euro 8 or Euro 8.50).

Giving no tip at all is considered impolite and should only be used when the service was bad. Tipping is common in any bar and restaurant, but not when the goods are exchanged over the counter (i.e. in fast-food restaurants or at street stalls). Traditionally, the owner of a restaurant (known as "Wirt" in German) does not receive a tip. However, this tradition is less common nowadays.

China

In China, traditionally you don't have to tip at restaurants or hotels. But businesses that cater to foreign tourists may accept your tip if you insist. In five-star international hotels, porters are tipped.

Finland

In Finland tips for taxi drivers are often the roundup or 0.5 - 10 Euros, for extra hard service, 20 - 50 Euros. Even best hotels rarely help with your luggage so that the only helper may be your cab driver (1-2 Euros per piece). Waitors usually get tips that already are included in the bill, but still they may get some extra. Tipping is not compulsory, however. Doormen, "portiers", in many restaurants frequently receive mandatory tips either for "taking care of the overcoat and umbrella" or for assuring security, but in fact letting you visit next time easier.

Tips are preferred in cash instead of credit cards, because of avoiding sharing with the employer and with the tax office.

For clerks, police, etc. tipping is not allowed, and could lead to legal problems.

Germany

In Germany, sufficient wages are paid to most service employees. However, in bars, restaurants and taxicabs tips are expected to be 5% to 10% of the total amount if the guest was satisfied with the service. When the bill is presented, pay any multiple of a Euro. Replying with a new total "nice" figure and asking for change in full Euros, no Cents, is okay. Restroom attendants are commonly tipped €0.50 if not indicated otherwise.

Iceland

In Iceland tipping is practically unheard of except when a customer wants to show appreciation for exceptionally good service.

Ireland

In the Republic of Ireland, tipping is not very established as a custom, though has become much more commonplace as a result of increased wealth through the Celtic Tiger. Very few employees in the service industry will expect a tip. Many may be insulted if one is provided. Similar to the UK, it is not customary to tip bar staff, though often waiters in pubs (known as Lounge Girls/Boys) are tipped a token amount. It is not usual to tip in a restaurant when a service charge is included (which is the norm), except in the case of exceptional service. Where no service charge is indicated, a tip of about 10% is appropriate for good service.

Japan

Tipping is not the custom in Japan and it is almost never done.

Malaysia

Tipping is not customarily done in Malaysia. However, individuals will gratefully accept any tips you give them for their exceptional service.

Mauritius

Even though tipping is not the custom in Mauritius, individuals will gratefully accept any tips you give them for their exceptional service.

New Zealand

Tipping as of habit is not part of New Zealand culture and is often treated with suspicion or actively frowned upon, as many people look upon it as a largely American custom that over-compensates certain professions while other are left out. Despite this, some forms of tipping are quite common, such as rounding up a taxi fare. It is almost as likely, however, that the taxi driver will round the fare down. Occasionally tips are given in a restaurant for exceptional service, and even then the waiter might insist that the tip be given back.

New Zealanders who visit North America often state that one of their greatest annoyances is their unfamiliarity with the custom of tipping, and often say that bellhops and bartenders in particular expect entirely too much money for relatively little extra work.

Singapore

Tipping is not required in Singapore and even taxis will usually return your change to the last cent, or even round in your favor if they can't be bothered to dig for change.

Slovenia

Tipping is not the custom in Slovenia and it is almost never done.

South Africa

In South Africa, the customary tip at restaurants is 10%, although a few restaurants charge a mandatory service fee for large parties. A small amount is occassionally given to petrol station attendants for additional services, such as cleaning one's windscreen. Toilet cleaners at service stations along major road routes are sometimes tipped when they provide good service and keep the facilities clean, especially if there is a tip jar, or a notice recommending tipping, in the rest room. "Car guards", who claim to "look after" one's parked car are usually given a small tip if they are in uniform and authorized; however those without uniforms are usually regarded as a nuisance, and tipping them is not compulsory, despite the fact that they often harass motorists looking for payment.

South Korea

Tipping is not the custom in South Korea and it is almost never done.

Spain

In Spain, expected tips at restaurants are usually from 5% to 10% of the total amount. This also applies to Latin America.

Sweden and Norway

In Sweden the service charge is included in the bill, but a small tip may be given as a sign of approval of the service.

Taiwan

In Taiwan tipping is practically unheard of except when a customer wants to show appreciation for exceptionally good service.

Turkey

For service establishments (hotels, restaurants, Turkish baths, barbers/hairdressers) the common level of tip is from 5%-15% but taxi drivers do not expect tips.

United Kingdom

In the United Kingdom tipping is common in restaurants (assuming a service charge is not already included), though no tip is expected in pubs (however, regulars may offer occasionally to buy a drink for a bartender). Taxis are sometimes tipped, but otherwise tips are usually only given for exceptional service (the expected percentage is rarely more than 10% and frequently less).

United States and Canada

In the United States and Canada, these people are likely to expect to be tipped (expected amount):

Waiters (15-20%; 20% if it is a 4-star restaurant or for large parties; more if service is exceptional)
Bus Person (Tip generally not expected, as tip sharing with the waiters occurs)
Hotel bellman/bellhop/porters ($1 to $2 per bag)
Hotel maids ($2 per day)
Hotel room service (15-20%; Same as restaurant gratuity below.)
Hotel concierge ($5 to $10)
Hotel doorman ($1 per bag for help with luggage; $1 for hailing a cab)
Sommeliers (15% of the cost of the bottle)
Bartenders ($1 per drink or 15% of bar bill)
Restroom attendant ($0.50 to $1)
Taxicab/limo drivers (15%)
Valet parking attendants ($1 to $2 upon both arrival and departure)
Hairdressers/barbers (10% in small towns, 15-20% in cities; Tip is expected whether the stylist is the proprietor or not.)
Manicurist (15%)
Spa service (15-20%)
Pizza (and other food) deliverypersons (10% of total, at least $2. Remember he must pay for his gas. Many drivers are contractors who receive no hourly wage.)
Curbside luggage handlers at airports ($1 per bag)
Coat checker ($1 per coat)
Ski instructors (sometimes, especially when giving a private lesson)
Piercers and tattoo artists
Movers ($5 to $10 per mover)
Large or heavy deliveries ($5 to $10 per person)
Shoe shiners
Tour Guides/Tour Bus operators (only private guides)
Karaoke disc jockey ($1 per song)

As a rule, the proprietor/owner of a business would not expect an additional tip.

Tipping in the US is theoretically optional, but has become so ingrained in US culture that it is in practice mandatory. Gratuity is generally 15% for restaurant meals, 20% for very good service, and more for exceptional service. Many restaurants will automatically add a gratuity of 18% to the bill for large parties (often defined as 6 or more people)—if this is done the amount should be clearly indicated on the check as a "gratuity" or "service charge". In this case no additional tip is expected to be added to the total, however if you're dining during a dinner meal, it is customary to tip a bit more to cover the 20% that is usually tipped.

Sometimes, this information on the menu can serve as a guide to patrons. If a diner is unsure of how much to tip a server, often the gratuity stated on the menu is the appropriate percentage to apply.

A good rule of thumb, when at a bar, and recieving good or above service, is to tip $1.00 per drink, excluding super premium beverages. This means that 99% of drinks, such as beer and mixed drinks, should be tipped the aforesaid dollar (minimum). Some drinks such as Macallan 25, which can be more than $35.00 for a single neat shot, could deserve more. This is arguable however, as it is just as easy to pour this shot as a shot of well vodka. For a pitcher of beer, which usually contains around four beers, a tip of $2.00 is reasonable. If you are drinking a Coke (at an actual drinking establishment, not a restaurant), a tip is still a good idea, but it is acceptable to tip every other Coke, or on every third. Remember that bartenders and cocktail waitresses depend on tips for a salary, and better tipping is almost always rewarded with better service.

In some large cities, especially New York, the staff of apartment buildings, such as building superintendents, porters, concierges and doormen, expect an annual tip from residents during the winter holiday season. The amount to tip varies on the occupation of the person receiving the tip and the size and wealth of the building; most residents typically budget $75 to $200 in total each year for building holiday tips. Building staff also expect tips for performing services not normally part of their jobs, such as watering a plant or running an errand.

When dining out, keep in mind that the contact you have with your server is only one part of a chain of events that occurs when food is ordered. If food is prepared incorrectly or takes too long, it is often the fault of the kitchen, which may only receive only a wage and no part of the tip left, but in some restaurant the kitchen staff share in the tips.

If service is truly poor, tipping may be foregone. For the worst service ever received (in US), leave a one cent piece under a plate. Keep in mind, however, you will be remembered, so it may be best to never enter that establishment again.

However, some restaurants automatically include a gratuity on a bill. This is part of the bill, and not paying the tip may be subject to the same consequences as "skipping out" on a bill. For poor service in this case, speak with the manager or supervisor on duty.

Under US federal law it is considered bribery to tip US government workers. In some cases a potential tipper can donate money to a charity related to the government agency. For example, most US National Parks have related "natural history associations". In which case the worker that prompted the "tip" may appreciate hearing that their service prompted a donation.

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