USPS OIG Report: Compensation, Benefits, and Bonus Authority in Calendar Year 2025

Background

Each year, the U.S. Postal Service is required to report on compensation in the annual Comprehensive Statement of Postal Operations. For calendar year (CY) 2025, the annual salary of each Postal Service employee was limited to $250,600. Two exceptions granted under the Postal Accountability and Enhancement Act of 2006 (PAEA) allow the Postal Service to exceed this limit. The first exception provides for bonuses or other rewards such that the employee’s total compensation does not exceed the salary of the U.S. Vice President ($289,400). The second exception allows the Postal Service to exceed the salary of the U.S. Vice President by 20 percent ($347,280) for up to 12 critical senior executives or equivalent positions.

What We Did

Our objective was to determine whether the Postal Service complied with applicable maximum total compensation provisions of the PAEA and related Postal Service policies and guidelines for CY 2025. We reviewed the relevant provisions of PAEA; Postal Service policies, procedures, and guidelines regarding compensation, benefits, and bonuses; payroll, bonus, and award information from Postal Service systems; and employment agreements applicable to the compensation limits for the project scope. We also conducted interviews with Postal Service employees.

What We Found

The Postal Service complied with the applicable compensation provisions of the PAEA and its policies and guidelines related to benefits, bonuses, and awards to employees in CY 2025. We reviewed the CY 2025 compensation of 158 Postal Service officers and executives and found:

• Basic annual salary for 147 of these employees (those not designated as critical) did not exceedthe Executive Schedule Level 1 salary of $250,600. In addition, their total compensation did not exceed the U. S. Vice President’s total annual compensation of $289,400.
• Total compensation for the 11 employees designated as critical did not exceed 120 percent of the U.S. Vice President’s compensation or $347,280.

Recommendations and Management’s Comments

Based on the audit results, we did not make any recommendations. The Postal Service declined to provide comments on this report.

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Source: USPS OIG