Supermarket chain Sainsbury’s has awarded its staff a 5% pay rise.

The increase is above inflation and builds on “several years of significant investment in colleague pay,” according to the supermarket.

The news has been welcomed by trade union Usdaw (Union of Shop, Distributive and Allied Workers), which has more than 360,000 members across the UK.

The Sainsbury’s pay package also includes a pension scheme, share-save scheme, free food during shifts and discounts that allow workers to save over £600 annually on an £80 weekly shop.

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Sainsbury’s CEO Simon Roberts said: “Our colleagues are at the heart of our business.

“Their hard work, dedication and commitment have driven our strong momentum and helped us win grocery market share growth for the sixth consecutive Christmas period.

“I’m delighted to share that we will be raising pay for our hourly-paid colleagues by five per cent this year. This increase reflects our commitment to rewarding our colleagues for their exceptional service and productivity.”

Usdaw general secretary Joanne Thomas said: “Usdaw has a longstanding and valued relationship with Sainsbury’s and we welcome today’s announcement of an above inflation pay rise.

“Our members are key workers in their communities and crucial to the success of the business,” she said.

“It is only right they are fairly rewarded for their hard work, a case that Usdaw has consistently made in pay talks with the company.”