Tip

A tip (also known as a gratuity) is an amount of payment to certain service sector workers which is in addition to the advertised bill or fee. These payments and their size are a matter of social custom.

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. For example, the United States Internal Revenue Service (IRS) requires employers of restaurants to ensure that the total tip income reported to them during any pay period is at least 8% of their total receipts for that period. If the reported total is less than 8%, employers must allocate the difference between the actual tip income reported and 8% of gross receipts.

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.

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

In India, Middle-East Asia and Egypt, and in Bosnia and Herzegovina, tips are known as Backshish or Bakshish (a term that is also used to connote bribery).

Tipping by region

Africa

Egypt
Tipping in Egypt can be tricky. Most public bathrooms are staffed, and visitors are expected to tip the attendant. Some restroom attendants, especially at tourist sites, will dole out toilet paper based on the tip they receive. Some locals have been known to attempt to demand backshish for minor services, such as assisting people out of their cars or helping people up if they trip in the street. There is no rule for what is considered tip-worthy, so be ready to hand out an Egyptian pound or two just to use the bathroom or to get into a building. For professional services, such as tour guides or translators, a tip of 20% or more is generally accepted, and for taxis and restaurants, 10-15%.

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 occasionally 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.

Asia
Tipping is not common in Asia, though there are regional variations.

China
In China, traditionally there is no tipping. However, businesses that routinely serve foreign tourists may expect a tip. An example would be tour companies, where both the tour guide and the driver may expect a tip.

In five-star international hotels, porters are tipped. In some karaoke bars, there may be a washroom valet who expects a tip.

India
In India there is little to not tipping. However, many high class restaurant and modern day establishments have helped establish a new trend of tipping in India.

Japan
Tipping is not the common custom in Japan and it is almost never done at casual restaurants.

Hong Kong
Tipping in Hong Kong is a face-saving activity but it can also be a legal issue in some occasions. Waiters, who have already received compulsory 10% service charge, may feel weird if customers refuse to pay any voluntary tipping. However, in one occasion, a woman was convicted of tipping staff of Hong Kong Telecom and breaching the ordinance for corruption. There is no consistent rule for tipping.

Restaurants: 10% of the bill is usually given, but the expectation is that the bill is rounded. For enhaustic service, at least HK$10 may be needed. In luxury restaurants, it is common to pay HK$20 to HK$100 or even more.
Fast food and local food shops: no tipping is needed, or even rounding the bill.
Utility companies: no tip; it may breach a strict ordinance for corruption.
Hair Salons: tipping is not compulsory and not even a custom for all, but some may pay $10 to $30 to maintain good relations with hair stylists.
Massages: tipping is common; HK$20 to $100 may be paid, depending on occasions (for example good touch/bad touch).
Taxis: the driver customarily rounds the bill. No matter how long the trip is, extra tipping is not expected from local people.
Cinemas: tipping is uncommon.
Bars: tipping is not a normal occurrence, though some may round the bill.
Hotels: service charge is always included, but bell-boys may expect a small gratuity.
Food delivery services: it is becoming less common to expect tipping, but staff from non-chain shops may round the bill.
Movers: tipping is always expected, around HK$100 per head. Refusing to pay tipping is no different from making a formal complaint.
Restrooms: tipping is never expected.

Malaysia
Tipping is not customarily done in Malaysia.

Singapore
Tipping is not required in Singapore; however it is common for restaurants to levy a 10% service charge.

South Korea
Tipping is not the custom in South Korea and it is almost never expected. Many hotels and a few tourist restaurants add 10% service charge on their checks. However, it is deemed customary (although not mandatory) to tip porters and maids in international hotels, and it is always considered a generous gesture to ask taxi drivers to keep the change.

Taiwan
In Taiwan tipping is practically unheard of except when a customer uses a porter at an airport, which is usually 50 new Taiwan dollars per luggage, or wants to show appreciation for exceptionally good service. Many restaurants and hotels already add 10% service charges. Taxi drivers may not willfully refuse to make changes or ask for tips.

Oceania

Australia
In Australia, tipping is traditionally not common and, beyond the hospitality industry, almost no service providers will 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 large tourist cities such as Gold Coast, Sydney or Melbourne, with 15% expected for 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. Taxi drivers are traditionally given the small change when paying in cash, although a tip would not be expected when using a credit card as the total would include a service charge.

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 others 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.

Europe
In general, in the European Union and other parts of Europe, tipping is rather uncommon, although there are regional variations.

Austria
In Austria, waiters receive sufficient wages, although this has not always been the case. 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 €7.80 can be paid as €8 or €8.50).

Giving no tip at all is considered impolite and is only done when the service is 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.

A tip is known in the German language as Trinkgeld, which literally translates as 'money for drink'. In similar fashion, the French expression is pourboire.

Bulgaria
Tipping is not the custom in Bulgaria, although one can leave a tip as a sign of appreciation.

Croatia
Tipping is not particularly common, although it happens in restaurants and bars. Prices are usually already adjusted upwards, and labour laws ensure a minimum wage for all workers, therefore tipping is usually not expected.

A peculiar practice of tipping exists among the pensioners who receive their pension via mail in rural settlements - they tend to leave any coinage to the postman who delivers it as a sign of appreciation.

Czech Republic
Although it is customary to tip in the Czech Republic, it has very little to do with the size of the bill, and more to do with a sign of appreciation.

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

Finland
In Finland tipping is entirely optional. Coat checkers generally have a compulsory service fee.

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.

France
In France, service charge is always included and tipping is usually not expected, though most people will leave €1 or €2 after a typical restaurant meal.

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.

Ireland
In the Republic of Ireland, tipping has not long been established as a custom, though has become much more commonplace in the period of increased wealth through the Celtic Tiger. Many people working in the service industry, particularly in restaurants, would expect a tip. It is increasingly common to tip in hairdressers/barbers and for a taxi ride, the fare would normally be rounded up. It is not customary to tip bar staff, or any 'over the counter' server, 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 for large groups), except in the case of exceptional service. Where no service charge is indicated, a tip of about 10% - 12% is appropriate for good service.

Italy
Tipping in Italy is almost absent today, and is seen as an odd, very old-fashioned custom. However it is likely that in most restaurants and hotels small tips, although never expected nor asked, will be happily accepted, especially from foreigners. Most Italians don't like to tip, and find the custom very annoying when visiting places like the United States where tipping is customary.

Service charges are assessed at some cafes, depending upon whether or not the patron sits.

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

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

Switzerland
Swiss workers enjoy a very high per capita income and minimum wage. As a result of this and modern cultural influences, tipping is typically low (ex. max. CHF5 regardless of bill size), if not non-existent. Tipping is also very rare outside of restaurants and is even rare at bars.

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
Tipping throughout the UK is strictly optional. A tip may be offered for good service in a restaurant, barber's, hairdresser's or for a taxi journey but it is clearly understood that a tip will not necessarily be given. If the person hoping for a tip were to ask for a tip or indicate that a tip was insufficient, then the customer would be likely to get angry and complain.

Tipping a policeman, fireman, nurse, doctor or other public-sector workers is prohibited and in the case of the police may be considered attempted bribery. For other public servants, however, a box of chocolates, flowers or possibly a bottle of wine may be considered appropriate as an expression of special gratitude.

Tipping is considered to be polite when one has been served by a waiter or waitress, the amount depending on the quality of the food and service. In self-service establishments, tips are not usually given, save in exceptional circumstances. Unlike in many other countries, there is no percentage perceived to be 'correct' when tipping. However, 10% is a considered a good minimum within the restaurant industry (if in change, strictly no bronze coins).

It is not normal to tip for drinks in a pub or bar, although offering to buy the barperson a drink is considered acceptable and they may then take (money) for the value of a drink (which is in effect taking a tip). Where, however, the pub is also a restaurant the serving staff may be tipped. It is less usual to tip in cafes and coffee shops than in restaurants, but it is by no means unheard of.

In some establishments, tips are kept individually by the waiter or waitress, whereas in others they may be pooled and divided amongst all the staff. In other instances, tips may be set aside for some other purpose for the benefit of the staff, such as to fund a staff party or trip.

North America

Canada
Tipping in Canada is very similar to that in the United States due to the relatively close nature of the two countries. However, tipping is less widespread and generally lower. For example, while the tipping range for waiters in the United States is 15-20% with 20% for good service, the range for waiters in Canada is 10-20% with 15% for good service. Albertan tip earners generally receive gratuities on par with the American level, perhaps owing to that province's increased affluence and closer cultural ties to the U.S. Quebec and Ontario allow employers to pay lower minimum wages to workers who would reasonably be expected to be receiving tips.

Workers who receive tips are legally required to report the income to the Canada Revenue Agency and pay income tax on it. However, many workers have been known to not report any income from tips at all or, perhaps more commonly, to "lowball" the figure. In response, the CRA has vowed that it will closely check the tax returns of individuals that it would reasonably expect to be receiving tips to ensure that the tips are reported, and that the amount reported on the returns is realistic.

Mexico
Tipping in Mexico is also similar to the United States. Meals have a 10-15% tip (this includes fast food deliveries). It's also customary to give 10 - 20 pesos to the kids who guard the car as if they were valet parking. Tipping is not expected in cabs.

United States

Tipping in the United States is legally optional, and generally only enforced through social norms. Employees in occupations where tipping is common typically receive very low salaries and receive the bulk, if not all, of their compensation in tips. The federal minimum wage for a tipped employee is $2.13.

At a restaurant
The customary tip for a restaurant meal in the United States is 15 to 20 percent of the bill.

Many restaurants will automatically add a gratuity of 15-20% to the bill before tax for large parties, often defined as 6 (or 8) or more people; if this is done the amount is clearly indicated on the check as a "gratuity" or "service charge." In this case no additional tip is required to be added to the total, but is appreciated if the service was excellent.

Tipping at buffet-style restaurants is not as common, since buffet workers are paid a slightly higher fixed wage and do not depend as much on tips. The amount of the tip should be proportional to the amount of time that the server needed to spend on properly helping the customer.

Sometimes, the menu offers tipping information as a guide to patrons.

When dining out, contact with the 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, whose staff may receive no part of the tip. In some restaurants, however, the kitchen staff share in the tips.

At many establishments, the server must tip out members of the support staff (kitchen, bartender, and busser) at the end of their shift. The amount that is tipped out is often determined by a certain percentage of the server's sales (most often 1.5-3% of total sales). Thus when a patron leaves a very small tip or no tip at all, it actually results in the server having to pay money to have served the non-tipping patron.[9] Legally, money received as a tip out should be reported as income for tax purposes, but in most establishments, the server pays taxes on money tipped out.

US federal labor law requires that if declared tips and hourly wages do not total the minimum wage (per pay period), the employer must make up the difference. Beyond that, servers often "tip out" portions of their money to support staff like bartenders and bussers.

At a bar
When at a bar, and receiving good or above service, it is customary to tip $1.00 per drink. Some drinks, such as Macallan 25, which can be more than $35.00 for a single neat shot, may deserve more. For a pitcher of beer, which usually contains around four beers, a tip of $2.00 is reasonable.

With the advent of credit cards, a more reasonable approach is to run a tab and tip on the total amount.

Holiday season
Many service staff are tipped annually during the winter holiday season (often called a "Christmas bonus"), such as house cleaners and pool cleaners. Some people also tip their local mail carrier in this manner (see government workers below).

In some large cities, the staff of apartment buildings, such as building superintendents, porters, concierges and doormen, receive similar annual tips.

Government workers
Under United States federal law it is considered bribery to tip government workers. However, they are permitted to receive money or gifts less than or equal to $20.00. It is a common practice to tip federal employees (such as one's mail carrier) $20.00 for the winter holiday. Also, in some cases a potential tipper can donate money to a charity related to the government agency. For example, most 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.

South America

Brazil
The customary tip at restaurants is 10%, although a few restaurants charge a mandatory service fee for large parties. It is usually not expected in cabs. Tipping a delivery worker is very unheard of. In fact, most delivery companies will ask the client how he or she is going to pay for the product so that the exact change could be provided. However, it should be noted that many restaurants include a 10% delivery charge in the note. Such a charge often depends on the municipality.

 

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