Tesco has said it will increase store workers’ pay by 9.1 percent in a roughly £300million investment. It is the latest supermarket group to lift pay levels for workers ahead of the rise in the national minimum wage in April.
The national minimum wage will increase from its current rate of £10.42 per hour to £11.44 on April 1.
Tesco, which employs more than 330,000 people across Britain, announced on Tuesday (March 5) that it will raise its basic hourly rate for store workers from £11.02 per hour to £12.02.
It will also boost the pay of workers inside the M25 to £13.15 per hour, from a current rate of £11.95 for those in inner London and £11.75 for those in outer London.
The pay deal announcement, which came after an agreement with trade union Usdaw, will also see the business increase its paternity level to six weeks fully paid and raise maximum sick pay entitlement to 18 weeks.
Tesco UK Chief Executive Matthew Barnes said: “This represents another significant investment in our colleagues, building on the last two years of investment.
“We recognise the amazing work our colleagues do every day in serving our customers and we’re really proud to offer such competitive rates of pay alongside a great range of exclusive colleague benefits.”
Tesco will also increase its annual Colleague Clubcard discount allowance to £2,000, up from £1,500.
Usdaw National Officer Daniel Adams said: “This deal not only delivers an inflation-busting increase for Tesco employees, but it also demonstrates the value of progressive employers engaging constructively with trade unions at a time when the cost-of-living pressures continue to be keenly felt by our members.
“We welcome the company’s positive response through our negotiations, which have resulted in the largest investment in pay in a single year, with the highest entry rate for store employees of any major supermarket.”
Tesco’s announcement comes days after rival Asda said it would increase its basic rate of staff pay to £12.04 per hour later this year.
Asda and Tesco’s announced pay rises would bring the two into line with the hourly rate paid to entry level staff at Sainsbury’s, Aldi and Lidl, all of which pay £12 outside London, according to an Express.co.uk analysis.
