25. Share-based compensation reserve
 

Telkom’s shareholders approved the Telkom Group share plan at the September 2013 Annual General Meeting. The scheme covers certain operational and management employees and is aimed at giving shares to Group employees, at a Rnil exercise price, at the end of the vesting period. Although the number of shares awarded to employees was communicated at the grant date, the ultimate number of shares that vest may differ based on certain performance conditions being met. Refer to note 30.

  Group   Company  
The movement within the share-based compensation reserve is: 31 March
2020
Rm		   31 March
2019
Rm		   31 March
2020
Rm		   31 March
2019
Rm		  
Balance at the beginning of the year 512   377   487   362  
Net increase/(decrease) in equity 323   135   323   125  
Employee cost (refer to note 6) 328   135   323   125  
Vesting of shares (5)   –   –   –  
Balance at the end of the year 835   512   810   487  

The increase in share-based payment reserve relates to the accelerated vesting of shares due to the voluntary severence, retirement and retrenchment packages in the current year.

Impact of COVID-19 on the share-based compensation reserve

There was no significant impact of COVID-19 at the end of the reporting period.