Deutsche Post plans significant postage hike and faces job security warnings

Deutsche Post has announced plans to increase the postage for a standard letter in Germany by 20 cents to 1.15 euros starting in early 2027. This represents the largest postage hike in the company's history. The company cited declining mail volumes due to digitalization, alongside rising personnel, energy, and material costs, as the primary drivers for the increase. Other mail types, including postcards and various large letter formats, are also expected to become more expensive. The proposal is currently awaiting approval from the Federal Network Agency (Bundesnetzagentur).

Separately, the Deutsche Post works council has issued a warning regarding proposed reforms to the Postal Act. Works council leader Yusuf Özdemir expressed concern to the Federal Ministry for Economic Affairs that removing tax privileges for business letters could jeopardize approximately 180,000 jobs. The proposed changes would subject certain business letters to VAT, a move the works council argues could threaten the stability of one of Germany's largest employers.