Around 65,000 employees at John Lewis are set to receive a substantial pay increase in April. The John Lewis Partnership, which encompasses both department stores and Waitrose supermarkets, announced that shop floor wages will go up by almost 7%, equivalent to £1,600 annually for full-time staff. Employees at the popular retailer are referred to as partners due to the unique employee ownership structure of the business.
While the pay rise news is confirmed, the fate of the annual partner bonus remains uncertain, as no bonus has been distributed since 2022. Jason Tarry, the chair of the partnership, expressed the organization’s commitment to providing a bonus when feasible. The decision on the bonus will be made by the Board in March.
The pay raise announcement is independent of the bonus decision-making process, with the bonus outcome pending the Board’s decision. Under the leadership of Jason Tarry and managing director Peter Ruis, previously of Tesco, the company has been striving to revitalize its performance after facing significant losses in recent years.
John Lewis revealed that 99.6% of its partners will benefit from the pay increase, totaling £108 million. Effective from April 1, employees working on the shop floor at John Lewis and Waitrose stores will see a 6.9% salary hike, with minimum hourly rates rising to £13.25 nationwide and £14.80 for stores within the M25 area.
For partners who acquire specialized skills and assume specific roles, pay rates will increase to £14.31 per hour, reaching £15.98 within the M25 boundary. These increases partly reflect the higher statutory National Living Wage starting April, with a 4.1% rise to £12.71 per hour for workers aged 21 and older.
Helen Webb, the chief people officer at the John Lewis Partnership, emphasized the significance of their employees, stating that the £108 million investment aims to increase partners’ earnings consistently. This pay raise underscores the company’s steadfast dedication to partner remuneration over the years.
Apart from the salary increments, employees at the Partnership enjoy perks such as discounts at John Lewis and Waitrose, up to a 12% pension contribution, subsidized personal development and leisure activities, discounted hotel rates across the UK, subsidized meals, and comprehensive health and wellbeing benefits including access to physiotherapy and counseling services.
In September, the Partnership reported a nearly tripled loss of £88 million for the six months ending in July. The increase in losses was attributed to restructuring costs and new tax and regulatory charges. The group operates 36 department stores and over 300 Waitrose supermarkets.
