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gratuity (noun) small gift of money (tip); gift of a large amount of money for service.

Gratuity is a tip or a reward for the service rendered. It is usually a small amount of money given in appreciation of the services of a waiter, a bellhop, etc.. A large amount of money, calculated on the basis of the period of service, and paid to any employee at the time of their leaving a job is gratuity. Governments and companies pay gratuity to their workers and employees when, after a period, they leave their jobs.

  • Hotel managements pay low wages to the waiters and bellhops because they make a lot of money by the gratuity in the form of tips left by the customers.
  • Jonathan is now retired. With his lifetime savings and with the gratuity the company is paying him for his service, he wants to buy a big house.
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Last Modified : 11-May 2009
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