Postmaster remuneration for Royal Mail products and services

Last December, Post Office and Royal Mail agreed a new Mails Distribution Agreement. Post Office has now begun a consultation with all Postmasters on how it proposes to change the remuneration structure and as part of this, Postmasters will receive specific data in relation to their branch or branches.

Overall Postmasters will benefit from an estimated additional £10 million worth of remuneration compared with the financial year 2020 / 21. The new commercial structure rewards Postmasters for selling more because remuneration for sales will be linked to the price of Royal Mail products. The Agreement will also ensure that postmasters are rewarded when a customer requires product add-ons such as additional compensation or guaranteed delivery days which will generate increased remuneration.

Post Office proposes to implement the new commercial structure from December 2021 ensuring all Postmasters have had a chance to review how their branch or branches could be impacted by the new commercial structure, respond to the consultation and for Post Office to consider these responses.

Recognising that most Postmasters will benefit from earlier implementation of the new arrangements, all branches will receive an interim additional monthly remuneration payment from April 2021 trading on the Royal Mail products and services that they sell to reflect the benefit from the new agreement now being linked to customer prices.

Mark Siviter, Mails Product Portfolio Director, said:

“This new Mails Distribution Agreement will see Postmaster remuneration for sales linked to the price of Royal Mail products and services and provides them with opportunities to maximise their remuneration.

“Mails makes up most of the remuneration that Postmasters receive which is why we are providing every Postmaster with detailed information as to how their branch or branches could be impacted by the new commercial structure. The vast majority will benefit and overall Postmasters will receive an estimated additional £10 million worth of remuneration this year.

“The new agreement enables the Post Office network to open up to other parcel carriers for the first time in our history and this will generate further, increased remuneration for Postmasters.”

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