Sainsbury’s will award 137,000 colleagues across stores in the UK an “industry-leading” pay increase of 4%, effective 30 August.
The rise will take Sainsbury’s standard rate of pay to £7.36 per hour, a 2.2% increase on the recently announced National Living Wage of £7.20 per hour for workers over the age of 25 which will be in place by April 2016. In awarding the increase Sainsbury’s has also elected not to differentiate between over and under 25s, and so over 40,000 colleagues under the age of 25 are set to benefit.
This news comes just weeks after the Randstad Business Support’s annual independent survey announced that, on average, the majority of candidates considering a role in the retail industry value pay and benefits over other factors, such as job security. Colleagues at Sainsbury’s already enjoy a range of benefits, including a pension, life insurance and an annual bonus. This year 133,000 colleagues shared a bonus pot of £50m.
Sainsbury’s, unlike fellow ‘Big Four’ retailer Tesco, is also one of the few major retailers to pay colleagues for the breaks they take during their shifts.
Sainsbury’s CEO, Mike Coupe, says that he values the “hard work, talent and dedication” of Sainsbury’s colleagues, which has been “central to our success and will remain so in the future.”
“We know what a difference they make to our customers each and every day and we’re totally committed to rewarding them well for the great service they provide. I’ve talked to thousands of colleagues over the past year and they tell me how much they value their package of benefits and the flexibility that we can offer as an employer.”
Sainsbury’s currently employs 161,000 colleagues across its stores, depots and store support centres.