The benefits offered by Royal Mail


The benefits offered by Royal Mail:

Pensions, pay and group risk

  • Royal Mail’s defined benefit (DB) pension scheme was closed to new members in March 2008 and new employees are provided with a defined contribution (DC) pension. The DB arrangement closed to future accrual in March 2018; members of this scheme have been transferred into a temporary cash balance arrangement while awaiting legislation permitting the creation of collective defined contribution (CDC) pension schemes. Royal Mail then plans to introduce this for all employees.
  • Personal accident insurance is available to all staff as an employee-paid flexible benefit.
  • Incentive pay or performance-related pay is applicable for managers and senior managers.

Health and wellbeing

  • Private medical insurance is offered on an employer-paid basis for around 6,000 senior managers.
  • A hospital cash plan is available to all staff as an employee-paid flexible benefit.
  • Dental care is provided as an employee-paid flexible benefit for all members of staff. In addition, Royal Mail’s Parcelforce division provides employer-paid basic dental cover for the 7,000 individuals within its remit.
  • Free eye checks.
  • Critical illness insurance is offered as an employee-paid flexible benefit for all staff.
  • Royal Mail’s enhanced sick leave policy provides six months of leave at full pay in any calendar year. Further sick leave of up to 12 months in any four-year period is at half pay, and any additional leave after this is paid at statutory rates.
  • A bikes-for-work scheme.
  • An employee assistance programme (EAP).

Family-friendly benefits

  • Enhanced maternity leave is available to staff with at least one year of service. Women receive the first 26 weeks of their maternity leave at full pay, and the remainder is paid at statutory levels.
  • Enhanced paternity leave is provided for staff with at least one year of service. Men receive two weeks of paternity leave at full pay.
  • Royal Mail operates a flexible working environment.
  • Childcare vouchers.

Financial wellbeing

  • Debt counselling and debt consolidation loans.
  • Financial education.
  • Retail discounts.
  • A discounted car service and MOT.
  • The organisation’s technology and smartphone salary sacrifice scheme allows employees to spread payments over a 24-month period.
  • Senior managers can access a cash allowance to put towards a company car.


  • A holiday purchase scheme, for up to one week, is available for all employees.
  • Employees receive between four and six weeks of annual leave, dependent on their length of service and pay band.
  • Royal Mail’s larger operational sites house on-site, 24/7 canteens.
  • Employees are empowered to run their own sports and social clubs; any required subscriptions can be deducted from employees’ pay.
  • Free postal re-directions.
  • The organisation runs an annual recognition initiative, The Chairman’s Award.