for the six months ended 30 September 2016
Reviewed |
Audited |
|
|---|---|---|
Rm |
Rm |
|
| Non-current portion of provisions | 1 851 | 1 731 |
| Employee related | 1 780 | 1 665 | Non-employee related | 71 | 66 |
| Current portion of provisions | 1 355 | 2 373 |
| Employee related | 1 239 | 2 231 | Non-employee related | 116 | 142 |
The increase in the non-current employee related provision is due to the increase in Telkom's obligation to the pre-September 2009 members of the Telkom Retirement Fund. The obligation increased mainly due to the periodic cost being larger than the contributions made by the Group.
The current portion of employee related provisions in the current period is less than the 31 March 2016 balance due to the provision for bonus being only for six months. The VSP/VERP packages that were provided at 31 March 2016 have been paid out in the current financial period for employees that left the employment of Telkom before or on 30 September 2016.