Page 134 - China Mobile Limited - Annual Report 2012

China Mobile Limited
Annual Report 2012
128
Notes to the Financial Statements
(Expressed in Renminbi unless otherwise indicated)
34 Employee Retirement Benefits
(a) As stipulated by the regulations of Mainland China, the subsidiaries in Mainland China participate in basic defined
contribution pension plans organized by their respective municipal governments under which they are governed.
Employees in Mainland China are entitled to retirement benefits equal to a fixed proportion of their salary at their
normal retirement age. The Group has no other material obligation for payment of basic retirement benefits
beyond the annual contributions, which are calculated at a rate based on the salaries, bonuses and certain
allowances of its employees.
Other than the above, certain Company’s subsidiaries also participate in supplementary defined contribution
retirement plans managed by independent insurance companies whereby the subsidiaries are required to make
contributions to the retirement plans at fixed rates of the employees’ salary costs or in accordance with the terms
of the plans.
(b) The Group also participates in the Mandatory Provident Fund Scheme (“the MPF scheme”) under the Hong Kong
Mandatory Provident Fund Schemes Ordinance with respect to employees employed under the jurisdiction of the
Hong Kong Employment Ordinance. The MPF scheme is a defined contribution retirement scheme administered
by independent trustees. Under the MPF scheme, the employer and its employees are each required to make
contributions to the scheme at 5% of the employees’ relevant income, subject to a cap of monthly relevant
income of HK$25,000 (HK$20,000 prior to June 2012). Contributions to the scheme vest immediately.
35 Equity Settled Share-Based Transactions
Pursuant to a resolution passed at the Annual General Meeting held on 24 June 2002, the current share option
scheme (the “Current Scheme”) was adopted.
Under the Current Scheme, the directors of the Company may, at their discretion, invite employees, including executive
directors and non-executive directors of the Company, any of its holding companies and any of their respective
subsidiaries and any entity in which the Company or any of its subsidiaries holds an equity interest, to receive options
to subscribe for shares of the Company. The consideration payable for the grant of option under the Current Scheme
is HK$1.00.
The maximum aggregate number of shares which can be subscribed for pursuant to options that are or may be
granted under the above scheme equals to 10% of the total issued share capital of the Company as at the date of
adoption of the Current Scheme. Options lapsed or cancelled in accordance with the terms of the Current Scheme will
not be counted for the purpose of calculating this 10% limit.