Hundreds of thousands of Tesco employees are set to receive a pay rise this month, part of a significant £200 million investment by the UK’s largest supermarket chain.
From March 29, shop workers and staff at online fulfilment centres will see their hourly wage increase by 5.1 per cent to £13.28. For those working within the M25, the hourly rate will climb to £14.55, reflecting an additional allowance of £1.27.
This adjustment aligns with the new national minimum wage and living wage rates, which come into effect from April. Tesco’s new rates will surpass the £12.71 minimum wage for workers aged 21 and over.
Other major supermarket rivals have also recently announced similar pay increases for their staff.
Sainsbury’s workers are getting a 5% pay rise this month, taking the hourly rate to £13.23 an hour nationally and £14.54 in London, while Lidl has lifted entry-level rates to £13.45 an hour nationally and £14.80 in London.
Aldi is set to become the highest-paying supermarket among its peers when it hikes pay for store assistants to £13.50 an hour nationally and £14.88 in London from April.
Ashwin Prasad, Tesco UK’s chief executive, said: “Our colleagues play a vital role in delivering for our customers every single day.
“I’m pleased we’re able to announce this pay deal which reflects our deep appreciation for everything they do and represents another meaningful investment in colleague pay.”
Meanwhile, Tesco said it was going to set out a new domestic abuse policy later this year, which will include up to three days’ paid leave for workers who experience abuse.
Daniel Adams, national officer for trade union Usdaw, said the pay increase “extends the gap between the Tesco rates of pay and the national living wage”.
He added: “The union is also particularly pleased that the business has agreed to be the first retailer to commit to providing paid leave to help support staff who experience domestic abuse – something that could make a huge difference for those affected.”
