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Is a discretionary payment made by a customer to a worker, such as a waiter, in return for service. The tip is made in addition to the advertised price of the service that is being paid for. Although tips are discretionary they are expected in many contexts and cultures and a failure to tip can be regarded as a breach of etiquette. In other contexts, offering a tip to a worker might be regarded as an insult, a symbolic demonstration of the worker's inferiority to the customer. In some occupations, such as restaurants and bar work, tips can be a major source of income for workers. In the UK, cash tips do not count for the calculation of the National Minimum Wage but where tips are collected, pooled, and paid to workers through the payroll, an arrangement known as a tronc, then they can be included in the minimum wage. Tips are also known as gratuities.

Subjects: Human Resource Management.

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