Tesco invests £180m to boost staff pay by 5%
Tesco is set to invest £180m in colleague pay, having reached an agreement with trade union Usdaw for a 5.2% increase.
From 30 March, the hourly rate for store colleagues will rise from £12.02 to £12.45, and again to £12.64 from the end of August.
As part of the pay deal, the London allowance will increase to £1.21, up 7.1%, taking rates from £13.15 per hour to £14.36.
This two-stage rate increase means that hourly-paid staff will have seen a pay rise of 32% since April 2022 – equivalent to a more than £900m investment.
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To bring Tesco in line with other retailers, the supermarket will be removing Sunday premium payments, with eligible colleagues receiving a one-off payment. However, Bank Holiday premiums will be retained.
The grocer will provide the colleague Clubcard discount with no cap for staff and their second Clubcard holder, replacing the previous £2,000 allowance.
Tesco is also increasing the maximum company sick pay entitlement to 20 weeks for eligible colleagues.
The grocery giant’s UK CEO Matthew Barnes said: “Our colleagues are our greatest asset, and this pay deal recognises the brilliant work they put in day-in, day-out to serve our customers.
“It also represents another significant investment in our colleague pay, which combined with our fantastic package of benefits, means Tesco continues to be a place to get on and thrive in a fulfilling and rewarding career.”
It’s not the first UK supermarket to boost pay rates this year. Earlier this month, Co-op frontline store colleagues voted to accept an above inflation pay rise, with hourly rates increasing to at least £12.60 per hour, during 2025.
The John Lewis Partnership is also to invest £114m in pay for 65,000 partners across its Waitrose and John Lewis brands this year, while Aldi, Sainsbury’s and Lidl have also unveiled changes to pay for store colleagues this year.
2 Comments. Leave new
Sunday premium gone though. Paying out just over 10 months of lost Sunday premium in a lump sum payment , Tesco say it’s 18 , but 18 months takes into consideration the 2 pay rises , so it actually works out at 10 months
To clarify 18 months payment working out at 10. I work every Sunday and will be losing £36.06 per month Sunday premium . My payout is £375 . So it’s not 18x £36.06 as Tesco want people to believe