Procedures for Calculating Workshare Discounts for Letters

The U.S. Postal Service offers reduced postage rates (i.e., worksharing rates) to mailers for handling, pre-applying barcodes, pre-sorting, and transporting mail. Worksharing rates are also referred to as workshare discounts because postage rates are reduced based on costs the Postal Service is estimated to avoid from worksharing activities the mailing industry performs, which enables the Postal Service to increase its operational efficiency. In fiscal year (FY) 2022, 87 percent of domestic market dominant mail was workshared. Ninety-seven percent of domestic market dominant workshared mail consisted of either First-Class Mail or Marketing Mail. Domestic market dominant workshared First-Class Mail and Marketing Mail consisted primarily of letters. The Postal Service increased the percentage of workshare discounts that align with avoided costs from 41 percent in FY 2018 to 91 percent in FY 2022. Worksharing is dependent on the Postal Service, Postal Regulatory Commission, and mailing industry performing several key activities; and the procedures for the workshare discount calculation process being current and sufficiently detailed for effective implementation by responsible personnel.