Royal mail shares for employees

Royal Mail offers its employees a share scheme, which allows them to purchase shares in the company at a discounted rate. Here are some details about the Royal Mail employee share scheme:

Royal Mail Share Scheme

The Royal Mail Share Scheme is a long-term incentive plan that allows employees to purchase shares in the company at a discounted rate. The scheme is designed to encourage employee ownership and alignment with the company's goals.

Eligibility

The Royal Mail Share Scheme is open to all permanent employees of Royal Mail, including postal workers, management, and support staff.

Discounted Share Price

Employees can purchase shares in Royal Mail at a discounted rate, which is typically 10-15% below the market price. The discounted price is set by the company and is subject to change.

Share Options

Employees can purchase shares in Royal Mail through a variety of share options, including:

  1. Employee Share Option Plan (ESOP): This plan allows employees to purchase shares in Royal Mail at a discounted rate, with the option to buy more shares in the future.
  2. Save As You Earn (SAYE): This plan allows employees to purchase shares in Royal Mail through a series of monthly payments, with the option to buy more shares in the future.
  3. Share Incentive Plan (SIP): This plan allows employees to purchase shares in Royal Mail through a series of monthly payments, with the option to buy more shares in the future.

Tax Benefits

Purchasing shares in Royal Mail through the employee share scheme can provide tax benefits, including:

  1. Tax-free growth: Any growth in the value of the shares is tax-free.
  2. Tax-free dividends: Dividends paid on the shares are tax-free.
  3. Capital Gains Tax (CGT) relief: If employees sell their shares, they may be eligible for CGT relief, which can reduce the amount of CGT payable.

Other Benefits

In addition to the tax benefits, purchasing shares in Royal Mail through the employee share scheme can also provide other benefits, including:

  1. Increased employee engagement: Employee ownership can increase employee engagement and motivation.
  2. Long-term wealth creation: Shares in Royal Mail can provide a long-term source of wealth creation.
  3. Diversification: Shares in Royal Mail can provide a diversification benefit, reducing reliance on a single source of income.

How to Join

To join the Royal Mail employee share scheme, employees can contact their HR representative or visit the Royal Mail intranet site for more information.