✉️ CWU Agreed Rates · 2026/27 Tax Year

Royal Mail Payslip
Exact Take-Home for OPGs, Sorters & Drivers

We've calculated the exact monthly take-home pay for standard Royal Mail roles, factoring in the Postal Business Supplement (PBS), London Weighting, and Salary Sacrifice pensions.

✓ 2026/27 CWU Rates✓ PBS Included✓ Pension Calculated

Check Your Royal Mail Payslip Now →

Typical Royal Mail Take-Home — 2026/27

Standard take-home before overtime

Based on standard CWU negotiated rates. Assumes tax code 1257L and 6% RMPP pension via salary sacrifice. Total Gross includes PBS and Weighting where applicable.

Role	Total Gross/Yr	Income Tax	NI	6% Pension	Net Monthly	Net Weekly
OPG (Postman/Postwoman) 37 hrs @ £12.29/hr + PBS	£24,746	−£2,136	−£855	−£1,485	£1,689	£390
OPG (London Inner) 37 hrs @ £12.29/hr + PBS	£29,146	−£2,964	−£1,186	−£1,749	£1,937	£447
Processing Sorter 35 hrs (Nights) @ £13.50/hr + PBS	£25,670	−£2,310	−£924	−£1,540	£1,741	£402
Delivery Driver 40 hrs @ £13.20/hr + PBS	£28,656	−£2,872	−£1,149	−£1,719	£1,910	£441

The Royal Mail Overtime Trap

Why does overtime feel like it's taxed heavily?

Many postal workers rely on overtime (often paid at 1.5× basic rate) during busy periods. However, overtime on a Royal Mail payslip is fully taxable and subject to National Insurance, and importantly, it is not usually part of your salary sacrifice pension calculation.

Because your Personal Allowance (£12,570) is entirely used up by your basic pay, every single pound of overtime is taxed at the basic rate (20%) plus National Insurance (8%). This means you immediately lose 28% of your overtime gross.

Example: OPG earning £18.43/hr (1.5× Overtime)

If you work 10 hours of overtime in a week at £18.43/hr, your gross overtime pay is £184.30.

Income Tax (20%): -£36.86
National Insurance (8%): -£14.74
Net Take-Home: £132.70 (Effectively £13.27 per hour in your pocket)

Royal Mail payslip terminology

Basic Salary

Your contractual base rate × hours worked this period.

Overtime

Extra hours at 1.5× hourly rate. Fully taxable and subject to NI.

PBS (Postal Business Supplement)

A fixed amount added on top of basic pay for certain grades.

London Weighting

Additional allowance for employees working in London postal districts.

PAYE & NI

Standard UK tax deductions based on your code (usually 1257L).

RMPP Pension

Royal Mail Pension Plan, usually deducted via Salary Sacrifice.

Royal Mail Payslips — Frequently Asked Questions

Frequently asked questions

What tax code should a Royal Mail employee have?

Most Royal Mail employees should have 1257L if they have one job and their income is under £100,000. If you see BR, 0T, or W1/M1 on your payslip, you may be on an emergency code and paying too much tax.

What is the postal business supplement (PBS) on a Royal Mail payslip?

PBS is a Royal Mail-specific pay supplement agreed between Royal Mail and the Communications Workers Union (CWU). It's paid in addition to basic salary for certain postal grades. PBS is treated as regular earnings for tax, NI, and pension purposes.

Does Royal Mail use salary sacrifice for pension?

Yes — Royal Mail typically processes pension contributions as salary sacrifice. This means your pension contributions reduce your gross pay before tax and NI are calculated, saving you both income tax and NI on the contribution.

Why am I on emergency tax at Royal Mail?

Emergency codes (BR, 0T, M1/W1) are applied when HMRC hasn't issued a standard tax code. Royal Mail's payroll will usually resolve this within 2–3 pay periods as HMRC sends the correct code.

What are typical overtime rates at Royal Mail?

Overtime is typically paid at time-and-a-half (1.5×) for the first 4 hours per week beyond contracted hours. All overtime is pensionable and subject to full PAYE and NI.