Central Co-op will boost staff pay to £12 an hour alongside paid breaks, marking an increase of 24% in base pay over the past two years.
The new rates will be effective from 1 April and equate to an extra £2,535 per year for a full-time customer service assistant, Talking Retail reported.
Central Co-op chief member, customer and people officer Sarah Dickins said: “Our purpose is to create a sustainable society for all.
“At Central Co-op, we believe that our colleagues are our greatest asset, and we are thrilled to be investing into their overall package again this year.”
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Usdaw national officer Jayne Allport added: “At Usdaw, we are thrilled that we were able to work with Central Co-op on its commitment to fair compensation and colleague well-being through a pay increase to £12 per hour, and strongly support the many other additional benefits Central Co-op provides.
“These initiatives exemplify the co-operative spirit and dedication to supporting its workforce.”
The new rates of pay come alongside the regional co-operative’s additional employee benefits, including access to free health checks and a nutritionist, a virtual GP service, and free counselling sessions.
Last year, Central Co-op also launched a flexible working model trial to offer a better work-life balance, which is expected to be rolled out to all colleagues this year.
The Workflex scheme allows employees to choose between working a four-day week, a nine-day fortnight or a combination of both.
The updated pay rates follow on from a similar move by the Co-op earlier this month, as it unveiled plans to reward frontline staff with a more than 10% pay increase to at least £12 per hour from 1 April.
The change, which is in line with the Real Living Wage, represents the convenience retailer’s biggest ever investment into pay.