Post Office: Two Year Pay Agreement – 2026 and 2027

Post Office: Two Year Pay Agreement – 2026 and 2027

I am pleased to advise Branches that the Postal Executive has endorsed a no-strings two-year Pay Agreement for our Post Office members covering 2026/27 and 2027/28. The Key Features of the Agreement (pay offer letter attached with full details) are as follows:

Year 1

• A minimum 3% consolidated pay increase for all grades from 1st April 2026 flowing through to overtime and Scheduled Attendance rates

• Employer Pension Contribution – minimum increased from 9% to 10%

• Annual leave entitlements – An extra day’s annual leave (31 total) after 5 years’ service

• Scheduled Attendance for Supply Chain Members – increased to 1.3x Monday – Friday (Saturday was already at 1.3x)

• London Weighting increases – Inner rising from £7,000 to £7,300 and Outer from £5,200 to £5,500

Year 2

• A minimum 2.5% pay increasefor all grades from 1st April 2027flowing through to overtime and Scheduled Attendance rates

• Employer Pension Contribution– an increase in the maximum employer pension contribution from 12% (which is paid if members opt to pay an 8% contribution) to 13%

• Annual leave entitlements – An extra day’s annual leave (32 total) after 10 years’ service

• London Weighting increases – Inner rising from £7,300 to £7,600 and Outer from £5,500 to £5,800

• Re-opener clause – If average CPI inflation for the three-month period December 2026, January 2027 and February 2027 is greater than 3%, discussions will be reopened. If inflation falls below 2%, Post Office will reopen talks.

This is the third year running we have concluded pay negotiations prior to the pay review date.  Feedback from our Territorial and Unit Reps indicates that members will appreciate the early settlement.

There are other benefits in the Pay Agreement, including the removal of various lower Pay Points for both Postal Officer (Admin) and CSA’s.  Additionally, we have assimilated the FSA / OSS grade onto the Crew rate of pay and this is especially advantageous for these impacted members.

Members’ Consultative Ballot – Timetable

We will now conduct an individual members’ ballot to ratify the Pay Agreement.  Ballot papers will be despatched from Wednesday 11^thMarch and the closing date is Monday 30^th March.  Assuming ratification, the Year 1 pay increases will be made with April salaries.  Also, the new pension arrangements for the minimum employer contribution of 10% and the extra day’s annual leave for members with more than five years’ service will apply from 1^st April.

Conclusion

Against the current economic climate, the Postal Executive believes this is a reasonable settlement, especially when taking into account the improvements to the employer pension contributions.  Also, the two-year Pay Agreement provides a good level of certainty for our members looking forward.  In essence, our members will be receiving benefits, including the consolidated pay rises, which will provide for an overall above-inflation package of measures.  The next pay review date is 1st April 2028.

Branches are urged to bring this LTB to the attention of Post Office members.

Yours sincerely,

Andy Furey

Assistant Secretary

LTB 071/26 – Post Office Pay Agreement

Att: CWU Pay Letter March 2026 FINAL

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