Tesco swaps annual bonus for 10.45% pay rise for staff

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// Tesco gives shop and warehouse staff 10.45% pay rise
// Pay rise is offset by ending 3.5% annual bonus
// Tesco CEO Dave Lewis could see pay packet scrutinised at AGM this week

Tesco is giving its shop and warehouse staff a 10.45 per cent rise in hourly pay over the next two years by doing away with their annual bonus.

In September, the UK’s largest supermarket will increase minimum hourly pay for its store and warehouse workers from £8.42 to £9.

The move brings Tesco in line with the rates paid by Lidl and Asda. 

While the pay rise will be the equivalent of nearly £1,200 to someone working a 30-hour week, it will be offset by the annual cash bonus, of 3.5 per cent which Tesco has stopped.

Last year Sainsbury’s announced it would be increasing hourly pay for its store workers from a base rate of £8.00 to £9.20 per hour. For colleagues working in stores in Zones 1 and 2 of London, this will increase to £9.80 per hour.

Those increases came at the expense of paid breaks and bonuses, although workers have been promised another review of their pay in March 2020.

Tesco’s increase brings it ahead of Morrisons staff, who are expected to get a pay rise this autumn, although they currently receive a bonus equivalent to up to 3 per cent of annual salary.

Waitrose pays ranges from £7.21 per hour for gas station attendant to £11.00 per hour for cashier.

Last month Tesco chief executive Dave Lewis took home a pay packet worth £4.6 million, four months after 9000 jobs across the grocery giant were placed under review.

The Big 4 retailer’s annual report revealed that Lewis earned a £1.6 million bonus, on top of his £1.25 million base salary and £1.3 million through long-term share plans.

With Tesco’s annual general meeting set for this Thursday June 13, it’s likely the chief’s pay packet will come under scrutiny with Tesco’s major cost-cutting drive also underway as part of Lewis’ turnaround strategy.

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14 COMMENTS

  1. So, what is the increase for salaried staff… ie, store managers and assistant managers? The execs and the frontline staff get annual increases… what about the frontline managers who drive sales?

    • I suspect that the payment review for that rank of management will be purely performance related and no doubt the goal posts would be moved to ensure that you don’t all do well and get high grades. It’s always about saving more and work harder.

    • As far as I know managers have a different process and pay review I believe its a case by case basis and takes there performance into account.

  2. It does not work out 10.45% for all pay grades, only the basic grade. So any one on the higher grades get less than the 10.45% rise. Bet not many people has managed to Sussex that one out… oh but the managers still get their bonus… how wrong is that.. penalise the workers yet again.

  3. Tesco floor staff robbed again it’s not a pay rise it’s the nmw that you are due anyway 20 years I have worked for tesco and never been so ashamed to work for a company that’s done nothing take everything off us in the last few years double time time n half now our bonus Dave Lewis should be ashamed of himself and as for usdaw tesco staff need to wake up and get rid of this union that does nothing but agree with whatever tesco want people are right usdaw useless seven days a week

  4. 10% sounds good but are only going to raise my pay by 60p in sept and another 60p in oct 2020. Take into account inflation from now till 2020 and they have basically cut our pay.
    Typical corporate company.

  5. Why do customer service staff get better pay than other Tesco workers? We in the PFS have an awful lot of work and responsibility and very poor equipment as well as dire management support.

  6. People moaning that they don’t earn enough and that 10.45 base increase isn’t enough , there’s always the job centre

  7. Made me redundant 2 years ago after 25 years before that lost double time then time and a half, plus everything else. Over the years they were always cutting pay so in real terms wages went down, USDW were a joke always agreeing

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