Gratuity Provision Calculation: Who Qualifies and How Do We Calculate It for Year-End?

Can someone help to calculate the gratuity provision for the year ended 31st March to be accounted for in the balance sheet? Do we need to consider employees on the payroll as of 31st March or only those who have completed 5 years of service? Additionally, I need clarification on the calculation method.

Thanks,
Hosmath

Dear,

Gratuity will be payable after 5 years of completion of the job. The method is (last wages drawn by the employee / 26 * 15 * total years of the job in the organization).

Regards,
Raj