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Notes to the Consolidated Financial Statements

31st March 2018

8 EMPLOYEE BENEFIT EXPENSES (INCLUDING DIRECTORS’ EMOLUMENTS)

2018 2017
HK$’000 HK$’000

Wages and salaries 178,577 214,240
Pension costs – defined contribution retirement schemes
(Note (a)) 3,754 2,864
Other staff benefits 21,053 16,249

203,384 233,353
Severance pay 8,482 6,550

Notes:

(a) Defined contribution retirement schemes
Before 1st December 2000, the Group operated a defined contribution retirement scheme (the “ORSO Scheme”) in Hong Kong for all
qualified employees. The rate of contribution payable by the Group was 5% of the individual employee’s basic salaries.

With effect from 1st December 2000, the Mandatory Provident Fund Scheme (the “MPF Scheme”) was set up under the MPF Scheme
Ordinance for existing staff who opted for this scheme and eligible staff recruited on or after that date. The ORSO Scheme has
remained in place with the introduction of the MPF Scheme. Under the MPF Scheme, eligible employees and the Group are each
required to contribute 5% on the employees’ monthly net salaries with a maximum monthly contribution of HK$1,500 for employees’
monthly contribution.

Contributions to the ORSO Scheme and MPF Scheme charged to the consolidated income statement for the year amounted to
approximately HK$3,754,000 (2017: HK$2,864,000). No forfeited contribution in respect of the defined contribution retirement
scheme was utilised during the year (2017: same). No forfeiture contribution was available as at 31st March 2018 to reduce future
contributions (2017: Nil).

Contributions totaling approximately HK$612,000 (2017: HK$625,000) were payable to the ORSO Scheme and MPF Scheme at the
year end and were included in other payables and accruals.

90 ALCO HOLDINGS LIMITED ANNUAL REPORT 2018