4 July 2020
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Pension salary exchange

We launched pension salary exchange, or PSE, at the start of August 2015.

Monthly-paid employees were enrolled in PSE on 1 August, and weekly-paid employees on 3 August 2015.

You will have been automatically enrolled in PSE if you were a member of a Royal Mail pension plan and did not opt out before the 15 July 2015 deadline.

If you joined Royal Mail after July 2015, click here for more information

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 Royal Mail 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 launching PSE we, Royal Mail, will also pay lower NICs.

Opt in

If you chose to opt out of PSE but have 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 advicecentrePAY@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.

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

Further details

For more information on how PSE works, click the links on the left-hand menu. If you have any questions not answered here, please visit our useful contacts page.


Legal note:  We have the right to withdraw, suspend or amend PSE at any time.