Royal Mail staff across the county and the country will be automatically enrolled into the employee share scheme.

Business minister and Sevenoaks MP Michael Fallon said it was a unique opportunity for postmen and women to own a “real and meaningful stake” in their company.

It will provide a simple mechanism that encourages as many employees as possible to benefit from free shares in the company. But they will be offered the chance to opt out.

Mr Fallon said: “Post men and post women are at the very heart of Royal Mail making sure that post is delivered to all parts of the country, whatever the season. They are absolutely central to the future of the company and so it’s important that they share in its success, as decided by Parliament two years ago.

“So I am pleased to announce that eligible Royal Mail staff will automatically be allocated their free shares when we sell the company. I am determined that we offer staff a scheme which is attractive, inclusive and as easy to join as possible.

“This is a unique opportunity for our nation’s dedicated post men and women to own a real and meaningful stake in their company. Owning shares will mean that they get regular dividends and have the power to vote on company matters like any other shareholder.”

Around 150,000 Royal Mail employees in the UK will be eligible to participate in the award of a 10% stake in the company at the time of an Initial Public Offering (IPO), creating the largest employee share scheme of any major UK privatisation.

Staff who are eligible for an automatic free share allocation will also have the option to buy additional shares through the retail offer. Eligible employees will be given priority when those shares are allocated.

Employees must hold the shares for at least three years and full tax benefits are only available if the shares are held for at least five years.

Shares will be lost if the employee leaves Royal Mail within three years of their award. The allocation will be adjusted for part-time staff. To be eligible for shares, employees must have been working for the Royal Mail on July 10 and the date of listing.