Shop floor pay: how the UK’s biggest retailers compare

Both Tesco and Sainsbury’s made big investments in shop floor pay this week to help ease the burden of the cost-of-living crisis.

Tesco awarded staff the biggest pay rise in a decade, which will see hourly rates increase 5.8% from £9.55 to £10.10 from 24 July.

Meanwhile, Sainsbury’s claims to be the first major supermarket to pay the Real Living Wage and London Living Wage to all store colleagues.

The vast majority of store colleagues have received at least the Real or London Living wage since March but from May 1, retail colleagues in outer London will see an increase in their base rate of pay from £10.50 per hour to £11.05.

Retail Gazette compares what the UK’s biggest retailers pay store staff.

John Lewis/Waitrose – £10.75

Partners outside of London receive a minimum of £9.90 an hour, while those inside the M25 will receive at least £11.05.

Many partners are already paid above this – the average rate of non-management pay is around £10.75 per hour.

These base rates meet the current Real Living Wage and have been paid to staff since 1 April, 2022.

Aldi £10.57

New employees working at Aldi are set to earn £10.10 an hour, but after three years working at the store wages rise to £10.57.

Sainsburys – £10.50

The supermarket said it will now pay the “Real Living Wage” for all staff, making it the first major supermarket to do so.

From 1 May, pay for Sainsbury’s workers in outer London will rise from £10.50 an hour to £11.05 an hour – the Real Living Wage level for London.

Lidl – £10.10

In November 2021, Lidl revealed that entry-level wages would rise from £9.50 to £10.10 an hour outside London, while those in the capital will get £11.30 compared to £10.85 previously.

Ikea – £10.10

At the end of 2021, Ikea was met with praise after announcing that staff would be paid at least £11.30 an hour in London and £10.10 in the rest of the country.

Tesco – £10.10

Tesco has said that its hourly pay for shop staff and warehouse workers will be increased by 5.8% from £9.55 to £10.10.

The grocer which is the UK’s largest private employer, said the pay increase will come into force from July 24.

Morrisons £10.00

At the beginning of 2021, Morrisons became one of the first supermarkets in the UK to break the £10 an hour minimum wage barrier as part of a new pay deal that started in April 2021.

M&S – £10.00

This month, M&S revealed that from April, every Marks & Spencer store colleague across the UK will earn at least £10 an hour, from £9.50, as part of a broader reward package.

The retailer said it will also raise its minimum rate in London to £11.25 an hour.

Asda – £9.66

Asda confirmed it will increase hourly rates from £9.36 an hour to £9.66 an hour from the start of April this year while London workers will see their pay rise to £10.83.

The grocer has received backlash from many for not meeting the £10 mark like its competitors, but it argued before that its bonuses outshine some of the other stores.

Co-op – £9.30

Co-op gave all its staff a pay rise aligned to the real living wage back in 2020, in recognition of their hard work during the Covid-19 pandemic.

Retail staff are currently paid at least £9.30 per hour in the UK, and at least £10.30 in London.

Iceland – £9.00

Shop floor workers at Iceland currently receive £9 an hour, while workers in London earn £9.90. The supermarket pays this rate to employees of all ages, including new starters and its the same as The Food Warehouse.

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