Tesco has announced a 2.7% increase in its staff hourly rate, resulting in their pay rising from £9.30 to £9.55 an hour.
The deal will begin from September 5 and affects all hourly-paid and customer fulfilment, centre employees.
The deal has been developed in partnership with trade union Usdaw and Tesco said it was above inflation rates.
The Big 4 grocer also pointed out that since July 2014 its hourly rate has increased by 29.2%.
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Tesco is also increasing Night Premium Payments for eligible colleagues from the current rate of £2.21 to £2.30 from September 5, an increase of 4.1%.
“We’re delighted we have been able to reach this agreement giving our colleagues a well-deserved pay increase,” Tesco UK chief executive Jason Tarry said.
“Over the last year, our colleagues have gone above and beyond to continue to serve our customers throughout the pandemic.
“Together with our other colleagues’ benefits, it makes our total reward package more competitive than ever before.”
The news comes just days after the Big 4 grocer announced the end of a three-year partnership with French supermarket Carrefour.
Despite neither company specifying why the partnership had ended, some have speculated it has been scuppered by import costs after Brexit.
The agreement will formally end on December 31.
