24. 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 29.

  Group Company
The movement within the share-based compensation reserve is: 31 March 
2021 
Rm 		 31 March 
2020 
Rm 		 31 March
2021
Rm		 31 March
2020
Rm
Balance at the beginning of the year 835  512  810 487
Net increase in equity 201  323  154 323
Employee cost (refer to note 6) 203  328  154 323
Vesting of shares (2) (5) – –
Balance at the end of the year 1 036  835  964 810

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