Why sending post in Germany will get more expensive in 2025

From next year, the mail delivery company will be allowed to increase its prices by up to 10.5 percent. This comes after a 4.6 percent rise in 2024. 

The decision to allow further price increases is largely due to rising costs faced by the logistics company. 

Deutsche Post is in the process of determining new prices for the different types of letters based on increases advised by the Federal Network Agnecy (Bundesnetzagentur or BNA) .

In purely numerical terms, the price for sending the standard letter could increase from the current 85 cents to €1. However, industry experts suggest that the standard letter may be set at 95 cents. Either way, it's a significant jump from the 55 cents charged in 2012.

Once they are decided, the new prices will apply from January 1st, 2025 for two years until December 31st, 2026.

Currently, the standard domestic letter, weighing up to 20 grams, costs 85 cents, while the compact letter (up to 50 grams) is priced at €1, and postcards cost 70 cents.

READ ALSO:  Everything you need to know about sending mail in Germany

Why are the prices going up so much?

The postage price is increasing for this first time since the adoption of the new Postal Act, which was passed by German parliament in June. 

Its main purpose is to secure the financing of the universal postal service - i.e. the nationwide supply of the population from Flensburg to Berchtesgaden.

Deutsche Post must submit its price proposals to the Federal Network Agency for approval. The agency then gives the green light if they are within the specified framework.

However, Deutsche Post does not appear to be satisfied with the Federal Network Agency's framework for price increases.

"Deutsche Post has noted the Federal Network Agency's provisional decision on the scope for price increases in the regulated letter and parcel business with astonishment," the Bonn-based company said on Wednesday.

The regulator's requirements are "difficult to understand in view of expected wage increases, shrinking letter volumes and high investment requirements", a Deutsche Post spokesperson added. The Group said it will now examine the agency's decision in detail and present its arguments to the authority.

Deutsche Post has repeatedly stated in the past that it has been aiming for higher letter prices, particularly in view of increased energy and personnel costs.

"We have a significant need to catch up,” said CFO Melanie Kreis in August. Despite high inflation, the Group has only been able to raise letter prices by 4.5 percent over three years. "That's why the postage increase next year is a very important pillar for us to earn what we need."

Deutsche Post's letter business in Germany is suffering from competition from electronic communication such as e-mail. As a result, letter mail volumes are falling. Last year, the company reported that it transported around 5.9 billion letters, a third less than 10 years previously (7.8 billion). 

The Postal Act reform also allows for letters to arrive more slowly to customers in Germany. 

According to current laws, Deutsche Post must deliver 80 percent of the letters posted by the next working day and 95 percent by the second. 

The reform will scrap the next day requirement, and instead enforce a 95 percent delivery requirement by the third working day after a letter was sent. 

READ ALSO: Post in Germany to arrive later after parliament passes reform

This is intended to help Deutsche Post save costs