Co-op frontline store colleagues have voted to accept an above inflation pay rise, with hourly rates increasing to at least £12.60 per hour, during 2025.

The pay award, which has this week been accepted following a ballot of colleague Usdaw union members, represents an increase of almost 27% since 2022.

The rate of pay for customer team members will increase in two steps, rising from £12.00 to £12.30 per hour from 1 April, with a further increase to £12.60 from 1 August 2025.

This represents an overall rise in the hourly rate of pay of 5% and with paid breaks, equates to £13.46 per hour for a full-time customer team member.

Subscribe to Grocery Gazette for free

Sign up here to get the latest grocery and food news each morning

Team leaders will see pay increase from £13.32 to £13.65 on 1 April, with a further increase to £13.99 from 1 August.

For the convenience retailers customer team members working in London, the hourly rate of pay will rise from £13.15 to £13.85 from 1 August 2025, while team leaders in London will receive an increase from £14.47 to £15.24.

Co-op operations director Kate McCrae said: “Our store colleagues are at the very heart of the business and we are pleased to be able to provide a reward package that is competitive, above inflation and impactful. This deal reaffirms our ongoing commitment to the Real Living Wage, and ensures Co-op is among the highest food retailers in terms of pay.”

The pay increase follows discussions with retail trade union Usdaw, which recommended that its balloted members vote in favour of the rise.

Usdaw general secretary Paddy Lillis added: “Usdaw has a longstanding and valued relationship with the Co-op and we welcome that the staff pay increase is in line with Real Living Wage rates. Our members are key workers in a business that delivers an essential service in our communities and it is only right they are fairly rewarded with a living wage.”