UPU adopts new Integrated Remuneration Plan and System for 2022-2025 cycle

At the 27th Universal Postal Congress held in Abidjan, an updated remuneration plan and a new remuneration system were adopted, marking an important step forward in the rationalization, modernization and integration of the UPU’s remuneration systems.

The new Integrated Remuneration System (IRS) will be implemented throughout the 2022 to 2025 Abidjan work cycle. The Integrated Remuneration Plan (IRP), which was first devised at the beginning of the Istanbul work cycle provided the strategic direction and roadmap to deliver proposals for the IRS. The work prescribed in the updated IRP is to be conducted throughout 2022 to 2025 and should result in the submission of proposals to the 28th Congress in Dubai in 2025 for a fully Integrated Remuneration System applicable from 2026 to 2030.

The new IRS builds upon the landmark decisions made by the Third Extraordinary Congress held in Geneva, Switzerland, in 2019, where the terminal dues remuneration for small packets were reviewed and self-declaration of those rates within certain limits and conditions was introduced.

“The new IRS is a concrete step towards full integration of the current UPU remuneration systems, namely the terminal dues system, the inward land rates, ECOMPRO rates, and the remuneration system for EMS items, which all evolved independently from one another over time,” said Altamir Linhares, Coordinator of the Remuneration Governance, Development and Integration Programme at the UPU.

“This situation resulted in lack of rate alignment across letter-post items, lightweight parcels, and EMS items. At the same time there was a need to modernize the UPU remuneration systems, in particular the rates and conditions applicable to items containing goods, to provide for more flexibility and to better respond to the important aspects of cost coverage and changing market needs,” Linhares added.

The IRS for the Abidjan Cycle reflects a balance between market-based evidence and varying political economy interests, such as affordability and levels of economic and postal development.

“One of the key benefits of the new system is an improved level of cost coverage for designated operators in the destination country through increased remuneration rates while focusing on making significant improvements in quality of service, as well as customer and operational visibility of postal items traveling through the global postal network,” Linhares explains.

“It also recognizes the needs of the designated operators in developing countries with small mail volumes by extending protection mechanisms that ensure a continued access to affordable remuneration rates in the destination country.”

The IRS provisions and rates will take effect on 1 January 2022. The UPU International Bureau will, in coordination with the restricted unions, organize and conduct workshops and training sessions for UPU members to fully understand and correctly apply the IRS, along with the usual calculation and publication of the relevant IRS rates every year.