Tesco workers across the UK are to get a pay rise starting from Sunday. The supermarket giant has announced a more than £200 million investment in pay, with wages for shop workers and staff at online fulfilment centres increasing by an above-inflation 5.1% to £13.28 an hour.
Employees inside the M25 will see their hourly pay rise to £14.55 as Tesco increases its London location allowance from £1.21 to £1.27 per hour.
Ashwin Prasad, Tesco UK’s chief executive, said: “Our colleagues play a vital role in delivering for our customers every single day. I’m pleased we’re able to announce this pay deal which reflects our deep appreciation for everything they do and represents another meaningful investment in colleague pay.”
The changes coincide with the new national minimum wage and living wage rates coming into effect from April.
Tesco is the UK’s biggest supermarket and its pay rise means its rates will sit above the £12.71 minimum wage for earners over 21 years old.
Rival supermarket giants have already announced pay increases for their workers in recent weeks.
Sainsbury’s workers are getting a 5% pay rise this month, taking the hourly rate to £13.23 an hour nationally and £14.54 in London, while Lidl has lifted entry-level rates to £13.45 an hour nationally and £14.80 in London.
Aldi is set to become the highest-paying supermarket among its peers when it hikes pay for store assistants to £13.50 an hour nationally and £14.88 in London from April.
Tesco has also announced it is planning on setting out a new domestic abuse policy later this year, which will include up to three days’ paid leave for workers who experience abuse.
Daniel Adams, national officer for trade union Usdaw, welcomed Tesco’s pay increase.
“This deal builds on the negotiations of the last few years and not only delivers a real terms increase to wages but extends the gap between the Tesco rates of pay and the National Living Wage,” he said.
“The Union is also particularly pleased that the business has agreed to be the first retailer to commit to providing paid leave to help support staff who experience domestic abuse – something that could make a huge difference for those affected.”
Tesco said it has also increased benefits on offer to staff over the years, including a virtual GP service and a competitive reward package that includes a Colleague Clubcard discount of up to 15% on their shopping.
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