The Post Office has announced a remuneration package for Postmasters worth £30 million for the 2024/25 financial year.
This includes a one-off payment equal to 15% of Postmaster’s March 2024 trading in variable remuneration which will be paid in April 2024, equating to a nearly £5 million investment by the Post Office.
Additionally, there will be an increase in Mails remuneration worth around £12 million as a result of Royal Mail tariff increases and remuneration increases for Royal Mail volume-based products, such as pre-paid parcels and returns, which will go up by 4.0% in line with CPI.
Postmasters who handle DVLA transactions will receive a 21% increase in remuneration.
Outreach payments to Postmasters who operate mobile vans as outreach Post Offices will increase by an average of 9.4% to take into account the national living wage increase and changes in fuel prices.
Moreover, the Post Office plans to invest an additional £3.5 million to roll out high-grade note counters in 2,800 of its largest banking branches. It hopes it will help automate the accurate processing of cash deposits.
It has also announced it’s new ‘Operational Excellence Incentive’ to compensate Postmasters for the time already spent on back-office activities.
By carrying out the existing operational requirements for running a branch, Postmasters will have the opportunity to boost total variable remuneration by up to 5% each month. These payments will be based on meeting the requirements for daily cash declarations, cash pouch remittances, cash holdings and monthly trading period accounting.
The scheme has been developed in collaboration with the Postmaster NEDs, Postmaster Regional Forums, Postmaster Experience Director Mark Eldridge, and the NFSP to ensure the scheme works for Postmasters.
The first remuneration payment for the incentive will be made on 30th September 2024. This will be based on activity in the August trading period. Post Office will be sharing with Postmasters more information, training and support guides on the incentive over the coming months.
Nick Read chief executive of the Post Office said: “Postmasters are not immune to the current challenging economic environment, and we are acutely aware of the impact minimum wage increases have on their costs. Following a strong performance for our online business, and thanks to Postmasters’ help in building the brand and delivering fantastic customer service, we have again been able to share this success with Postmasters in the form of a one-off payment.”
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