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

As retailers including Tesco and Sainsbury's raise shop floor pay, we compare hourly rates of store workers at the UK's biggest retailers.

As a new legal minimum wage comes into effect from April, we break down exactly how much shop floor workers earn at Tesco, Aldi and more.
The government's national living wage is currently £8.91, though this is going up to £9.50 from April this year.

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.

The John Lewis Partnership has announced it has donated £100,000 to the British Red Cross to help those affected by Russia's invasion of Ukraine

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.

Aldi


Sainsburys – £10.50

Sainsbury’s has raised wages for the second time in less than six months after increased pressure from investors.

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.

As part of its ongoing commitment to support the communities it serves, Sainsbury’s annual ‘Help Brighten a Million Christmases’ initiative has returnedvestment & 10% staff Christmas bonus


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.

Lidl


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.

The decision comes as the retailer commits to investing more than £1bn in London over the next three years to better meet the needs of its customers.
Pictured: Ikea Tottenham

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.

Tesco


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.

Morrisons, Kirkby store


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.

M&S store exterior


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.

GMB says supermarket giant Asda is forcing almost 150,000 retail workers to accept pay well below the industry average. 


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.

The Co-op has launched a new incubator programme for suppliers designed to help the retailer to seek out & support small businesses


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.

Iceland owners receive £150m payout after keeping £40m Covid relief


 

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5 COMMENTS

  1. You can’t really compare Iceland, co-op, Aldi & Lidl wages to the big 4 grocers or even the likes of Ikea & M&S as sales revenue per store, size of store and store team sizes is far far greater in these stores then Aldi and co. A lot of these M&S, Tesco’s, Sainsburys and ikeas of this world run at over £1m+ a week sales minimum ( none xmas trade to ) with store teams of in excess of 500, 600 members of staff. Some stores have been known to have teams of 1200 to 1500 staff inside them. As an Aldi to Iceland probably top out at 150ish staff and half million week sales at Christmas. so Aldi and co having smaller stores, staffing teams means they can pay more then others as there store costs are far far less. People need to factor in these differences.

  2. Tesco pay rise announced in June but not paid to staff till November in other words we are going to rob our staff off 5 months of pay rise.come on tesco bills go up in April start the pay rise from April and not June and then put it back till November

  3. Hi,
    I work for Co-op in London and the basic pay for customer team member is £9.50 + London location pay of £1.35 therefore a colleague gets £10.85 per hour. I’m not sure where this info in the article comes from…

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