The "gratuity" contemplated under the Payment of Gratuity Act,1972 is strictly a terminal benefit in addition to other terminal benefits whether statutory or otherwise. Based on the concept of CTC that is devoid of any specific statutory recognition in the matter of wage and salary administration, some employers project the gratuity which is a future benefit as a periodical outflow of employees' cost so as to misrepresent it as the current cost of employment with the ulterior motive of getting an edge in the matter of salary negotiation. The employees also fail to understand that payment of gratuity is contingent upon certain conditions and it requires no periodical financial contribution from him. Contracting out is impliedly prohibited u/s 14 of the PG Act,1972.