Overview

A tip, or gratuity, is an extra sum paid to someone who has provided a service as an expression of thanks. Typically the payment is separate from any base charge or fee; for background on the financial form of a tip see amount of money and for the context of the interaction see service. In many economies tips supplement wages and reward perceived quality, speed, or friendliness.

How tips are given and common amounts

Tipping takes multiple forms: cash left on a table, an added line on a credit-card receipt, or an electronic transfer. It may be a flat amount or a percentage of the bill. Many customers follow customary percentages (for example, 15–20% in some countries), while in other places a modest fixed sum is more common. Tips are separate from the advertised charge or service fee — contrast this with mandatory charges and fees noted on bills (fee) or with service charges added by establishments.

Where tipping occurs

  • Restaurants and cafés, where patrons tip servers and bussers (restaurant; server).
  • Bars and night venues, often tipping bartenders for each drink (bartenders).
  • Transportation services such as taxis and rideshares (taxi drivers).
  • Personal services—hairdressers, valets, delivery workers—or other contexts where a person performs a task directly for a customer.

Tipping norms differ widely. In some countries tipping is expected and forms a significant share of workers' earnings; in others it is discouraged or even seen as insulting (insulting) because a good price is expected to include service. Legal frameworks vary: some jurisdictions permit employers to count expected tips toward minimum wage calculations, while others forbid this practice. For many service workers tips represent an important portion of total pay (income), which affects debates about living wages, staffing, and service quality.

Etiquette, disputes and practical advice

Customary behavior around tipping can be a source of confusion for travelers and locals alike. Practical pointers include checking the bill for a pre-applied service charge (in which case additional tipping may be optional), asking locals or hosts about expectations, and keeping small bills for cash tipping. When in doubt, consult published local guides or hospitality staff. For more on social expectations and local practice see custom and consumer resources (paid).

History and notable facts

Tipping has historical roots in post-feudal hospitality and continental European rituals, later spreading and evolving through 19th- and 20th-century service economies. It has been the subject of reform movements, legal challenges, and public debate, especially where disparities between advertised wages and total compensation create tensions. For contemporary policy discussions and comparative data consult specialized sources and guides (further reading, service studies).

Key distinctions: tips are voluntary payments intended as thanks; service charges are mandatory additions imposed by the seller; and wages are employer-paid compensation. Understanding these differences helps both consumers and workers navigate expectations and legal rules.

For practical examples, legal clarifications, or region-specific etiquette, seek local resources or industry guides linked here: servers, norms, bar practice, transport rules, and income impacts.