The Post Office has announced one of the most significant increases in postmaster remuneration in recent years, setting out further details of its New Deal for Postmasters as part of its five‑year Transformation Plan.
From this month, postmasters will benefit from “higher revenue shares across core products, strengthened incentive payments and targeted branch support, reinforcing Post Office’s long‑term commitment to improving the sustainability and profitability of its network,” it said.
Under the changes, banking and travel products will now deliver a minimum 55% revenue share to postmasters, while all other products will deliver at least 50%, ensuring postmasters’ income grows in line with customer demand.
The remuneration uplift forms part of Post Office’s ambition to increase postmaster remuneration by £250 million by 2030.
Further enhancements include improvements to the Operational Excellence Incentive (OEI), which will rise from 5% to 5.5% and increase again to 6% later in 2026, alongside the introduction of a new metric incentivising effective stamp stock management.
The Post Office has also confirmed a 4% temporary top‑up on main variable rates for Mains branches, paid monthly for 12 months from April, no reduction in fixed remuneration for SPSO branches and a significant product‑specific uplift, with travel money card commission increasing from 40p to £5 per card for all branches.
Chief revenue officer at the Pos Office, Dominic Grounsell, said: “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.”
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