Post Office has announced one of the most significant increases in postmaster remuneration in recent years, as it revealed further details of its ‘New Deal for Postmasters’ under a wider five-year Transformation Plan.
From April 2026, postmasters will see higher revenue shares across key product categories, alongside enhanced incentive payments and targeted branch support, in a move designed to improve network sustainability and profitability.
Under the revised structure, banking and travel services will now provide a minimum 55 per cent revenue share to postmasters, while all other products will deliver at least 50 per cent. The changes aim to ensure that postmasters’ earnings rise in line with customer demand, forming part of a broader ambition to increase total remuneration by £250 million by 2030.
The overhaul also includes improvements to the Operational Excellence Incentive (OEI), which will increase from 5 per cent to 5.5 per cent in April, before rising again to 6 per cent later in the year. A new performance metric tied to effective stamp stock management will also be introduced.
Additional measures confirmed by the Post Office include a 4 per cent temporary top-up on main variable rates for Mains branches, paid monthly for 12 months from April, while fixed remuneration for SPSO branches will remain unchanged.
In a notable product-specific uplift, commission on travel money cards will increase significantly, rising from 40p to £5 per card across all branch types.
Postmasters received detailed remuneration breakdowns on 2 April, supported by a ‘Ready Reckoner’ tool designed to help branches assess the local financial impact of the changes.
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.”