Sainsbury’s has invested £25 million in a wide-ranging cost-of-living support package for colleagues to support them with rising household costs, including a pay rise, free food and increased discounts.
Some £20 million of that package will be invested into a pay increase for all hourly-paid colleagues.
For the first time, the Big 4 supermarket will be awarding colleagues with an autumn pay increase outside of the annual pay review period. Sainsbury’s and Argos hourly retail colleague pay will rise from £10.00 to £10.25 and from £11.05 to £11.30 per hour in London.
The new pay rates will be effective from 16 October, with 127,000 hourly paid colleagues across retail, local fulfilment centres and customer service contact centres expected to benefit.
The new support package will also give colleagues access to basic food items during shifts from the first week in October until the end of December, as well as increased discounts across both Sainsbury’s and Argos.
This will be the at least the second pay rise these colleagues will have had this year and will boost Sainsbury’s investment into colleague wages this year to £150 million. The move also takes the pay increase for frontline, hourly-paid colleagues to 7.9% this year and 28% over five years.
The additional increase will not affect the timing of the next annual pay review, which will go ahead in the new financial year.
Sainsbury’s boss Simon Roberts said: “Every day, I am hearing from colleagues who are really feeling the pressures of the rising cost of living.
“That’s why we are doing everything we can to help our colleagues as they face rising bills and living costs this autumn by investing £25 million into a package of support, including an early pay increase. This is the first time we have given two pay rises in the same year.”
“Our top priority is to support our customers and colleagues,” he continued.
“We are proud of our track record on colleague pay and, with this latest package of an additional pay rise, free food at work and bigger colleague discounts, we are very focused on doing as much as we can to help our colleagues and their families through this autumn and winter.”
Usdaw national officer David Gill also commented on the support package, describing the move as “unprecedented”.
“With the cost of living continually rising, we have kept open our dialogue with Sainsbury’s and we are pleased the business has responded so positively,” he said.
“This is an unprecedented additional autumn pay award and the free food and additional discount will be appreciated by our members… we are particularly pleased that this additional increase, due to take effect from October 2022, will not replace the usual pay review process which takes place annually.”
