This article provides a comprehensive overview of gratuity in its two main forms: as a voluntary tip in service industries and as a statutory employee benefit in many countries. It explores tipping customs across cultures, explains how gratuity functions as a legal employment payout—including eligibility rules and calculation methods—and highlights key differences between countries such as India, the U.S., and the U.K. Whether you're an employee understanding your rights or a customer navigating tipping norms, this guide offers clear insights into the financial, legal, and cultural aspects of gratuity.

This article provides a comprehensive overview of gratuity in its two main forms: as a voluntary tip in service industries and as a statutory employee benefit in many countries. It explores tipping customs across cultures, explains how gratuity functions as a legal employment payout—including eligibility rules and calculation methods—and highlights key differences between countries such as India, the U.S., and the U.K. Whether you're an employee understanding your rights or a customer navigating tipping norms, this guide offers clear insights into the financial, legal, and cultural aspects of gratuity.