Hundreds of Tesco employees are set to receive a salary increase at the end of the month, thanks to a £200 million investment by the UK’s largest supermarket chain. Shop workers and personnel at online fulfillment centers will see their pay rise by 5.1% to £13.28 per hour starting March 29. Those working in London will receive an additional £1.27 per hour, bringing their hourly rate to £14.55 within the M25.
These adjustments align with the upcoming changes in the national minimum wage and living wage rates effective from April. Tesco’s wage hike will position its rates above the £12.71 minimum wage for employees over 21 years old.
Competing supermarket giants have also announced wage increases for their staff recently. Sainsbury’s workers will enjoy a 5% pay raise this month, elevating the hourly rate to £13.23 nationally and £14.54 in London. Lidl has raised entry-level wages to £13.45 per hour nationally and £14.80 in London.
Aldi is poised to lead the supermarket sector in pay rates as it plans to increase the pay for store assistants to £13.50 per hour nationally and £14.88 in London starting April.
Ashwin Prasad, Chief Executive of Tesco UK, expressed appreciation for the efforts of their employees, stating, “Our colleagues play a crucial role in serving our customers daily. I am delighted to announce this pay agreement, demonstrating our profound gratitude for their contributions and marking another significant investment in employee compensation.”
Furthermore, Tesco announced its intention to unveil a new domestic abuse policy later this year, offering up to three days of paid leave for employees who face abuse.
Daniel Adams, national officer for trade union Usdaw, praised the pay increase, noting that it widens the gap between Tesco’s pay rates and the national living wage. He also commended Tesco for being the first retailer to commit to providing paid leave to assist staff experiencing domestic abuse, a move that could have a significant impact on those affected.
