The Post Office is to give postmasters a remuneration increase as part of its New Deal for Postmasters within its five‑year transformation plan.
From this month, postmasters will receive higher revenue shares across core products, strengthened incentive payments and targeted branch support. Banking and travel products will deliver a minimum 55% revenue share to postmasters, while all other products will deliver at least 50%. This is to ensure postmasters’ pay rises in line with customer demand.
The remuneration rise is part of Post Office’s ambition to increase postmaster remuneration by £250 million by 2030, as well as its long‑term commitment to improve the sustainability and profitability of its network.
Other enhancements include improvements to its operational excellence incentive, which will rise from 5% to 5.5% this month and to 6% later in 2026, and the introduction of a metric incentivising effective stamp stock management.
Post Office will also implement a 4% temporary top‑up on main variable rates for mains branches, paid monthly for 12 months from April, and a travel money card commission increase from 40 pence to £5 per card for all branches. There will additionally be no reduction in fixed remuneration for scale payment sub office (SPSO) branches.
The postmasters received detailed remuneration information earlier this month, as well as a ready reckoner to enable branches to understand the expected local financial impact. This is a quick-reference guide that covers mail, savings and insurance.
Dominic Grounsell, chief revenue officer at Post Office, said: “Postmaster remuneration remains a strategic priority. Delivering a meaningful uplift in postmaster remuneration is central to the New Deal for Postmasters. These changes ensure postmasters receive a fair, proportionate reward for the essential services they deliver and are properly supported to grow their businesses.”
