Pension salary exchange

All members are automatically enrolled into Pension Salary Exchange, unless they opt out. Find out more about the benefits.

Pension salary exchange

All members are automatically enrolled into Pension Salary Exchange, unless they opt out. Find out more about the benefits.

Employees of Royal Mail Courier Services, Storefeeder and Royal Mail Property & Facilities Solutions Limited are also eligible to participate in PSE.

What is PSE?

  • PSE is a way for eligible employees who pay National Insurance contributions (NICs) to increase the amount of money they take home each week or month, without changing their pensionable pay, the overall level of contributions made to their pension or the Employer benefits they receive.

  • By changing the way pension contributions are made, eligible employees – who are enrolled into PSE – can make a saving on their NICs.

  • You should receive an increase in take-home pay (also known as your net pay) equal to the NICs that you would otherwise have made on your pension contribution.

  • As a result of PSE your Employer will also pay lower NICs

For full details on PSE, visit the Collective Plan or NEST guides.

Legal note: Your Employer has the right to withdraw, suspend or amend PSE or any Employer pension arrangement at any time.

More information

  1. Under PSE, you no longer make a personal contribution to your Royal Mail pension. This means contributions coming out of your weekly or monthly basic paystop. Your basic weekly or monthly pay is reduced by the amount equal to the contribution you would currently make to your Royal Mail pension. This includes any Additional Voluntary Contributions (AVCs) you may be paying.

  2. We pay an increased employer contribution so that the amount paid into your pension is the same as before. The payments column of your payslip will start showing your basic pay and the PSE adjustment.

  3. Because your basic pay has been reduced, you will be paying lower National Insurance contributions (NICs), if you pay NICs. Your take-home pay increases by the same amount as any NICs saving you make.

PSE has no effect on the overall level of contributions made to your pension, your pensionable pay, pensions benefits or other Employer benefits you receive. 

If you are a member of the Collective Plan or NEST, please refer to the guides for the relevant eligibility criteria:

You would have been automatically enrolled into PSE but if you have previously chosen to opt out of PSE but have now changed your mind, you can opt back in at any time by calling HR Services on 0845 60 60 603 (Monday to Friday, 8.30am to 5pm, excluding bank holidays) or emailing hrsc.optants.in.and.out@royalmail.com and asking for an opt-in form.

This must be filled in, signed and dated and returned to: HRSC PSE, Royal Mail, 2nd Floor, Pond Street, Sheffield, S98 6HR, or by email to hrsc.optants.in.and.out@royalmail.com.

If you want to opt out of PSE, you can do so once a year during a specific opt-out period.