Tesco has announced a new pay deal seeing an increase in hourly staff wages by 10.5 per cent over two years.
According to the retailer, 97 per cent of staff will benefit under the new deal, seeing hourly rates rise from £7.62 an hour to £8.42 an hour by November 2018, significantly above the national minimum rate.
The three per cent who are negatively affected by the changes are set to receive a transitional payment of 18 months of the difference in pay.
The average Tesco worker will now reportedly take home £9.52 per hour, if its benefits package including pension and bonus plans is taken into account.
The first of three incremental rises will come into effect in November, seeing hourly pay jump to £8.02 per hour, then up to £8.18 in July next year.
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“This reward package sees our biggest investment in store pay for a decade, and gives colleagues a sustainable pay deal that rewards them for everything they do, while allowing us to also attract new talent,” Tesco UK boss Matt Davies said.
“We also want to do all we can to help working parents and that’s why we are proud to offer a much-improved maternity package to our colleagues.”
Usdaw’s national officer Pauline Foulkes added: “Tesco’s recent difficulties are a matter of public record and the staff have played a big part in helping turn the company around. Last year they received a one-off 5% bonus in recognition of that.
“So we are delighted to have negotiated a permanent substantial pay rise that averages over 5% a year for the next two years. We have managed to retain premium pay for Sunday and bank holiday working, despite a partial consolidation, even though most major retailers have now moved to a flat rate.
“This pay deal is a big step forward and shows that the company is prepared to invest in the staff to help grow the business.”