The Post Office is boosting pay for postmasters, including higher revenue shares, in what it has called the most “significant increase in postmaster remuneration in years”.
The remuneration restructure forms part of its New Deal for Postmasters that aims to increase postmaster pay by £250m by 2030.
From this month, the payment postmasters receive for processing bank transactions and travel products will increase to at least 55% of the revenue generated.
For other products, postmasters will now receive a minimum 50% revenue share.
Previously, revenue shares varied by branch type and product, and were often lower. The new changes mean every transaction is now worth more to the branch even if volumes stay the same, the Post Office said.
Over the next year, postmasters that operate in main branches, which tend to be the larger, standalone sites, will also receive a 4% temporary top‑up on those rates every month.
The Post Office has also enhanced its Operational Excellence Incentive (OEI), which gives postmasters the opportunity to earn an additional boost on top of their monthly pay cheque by hitting operational requirements such as daily cash declarations and cash pouch remittances.
The maximum percentage will now rise from 5% to 5.5% this month, and increase again to 6% later this year. It has also introduced a new metric incentivising effective stamp stock management.
The state-owned company has also confirmed there will be no reduction in fixed remuneration for scale payment sub office (SPSO) branches, which are the sites that remained on contracts issued before the network transformation programme which began in 2012.
Chief revenue officer Dominic Grounsell said postmaster remuneration remained a strategic priority.
“Delivering a meaningful uplift in postmaster remuneration is central to the New Deal for Postmasters,” he said. “These changes ensure postmasters receive a fair, proportionate reward for the essential services they deliver and are properly supported to grow their businesses.”
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