// Sainsbury’s increases staff pay outside of annual pay review for first time
// The grocer has invested £25m to support hourly paid staff with rising household costs
Sainsbury’s has introduced a staff pay rise outside of the annual pay review for the first time in an effort to help during the cost-of-living crisis.
The new £25 million investment aims to support hourly paid colleagues with rising household costs – £20 million of which will be invested in a pay increase.
Sainsbury’s and Argos hourly retail colleague pay will go from £10.00 to £10.25 and from £11.05 to £11.30 per hour in London. Sainsbury’s staff have had at least two pay rises this year.
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It will bring investment into colleague pay this year to £150 million and takes the pay increase for frontline hourly paid colleagues to 7.9% this year and 28% over five years.
The new support package will also give staff access to basic food items during shifts from the first week in October until the end of December and increased discounts at Sainsbury’s and Argos.
The free food will ensure that Sainsbury’s employees can have something to eat while they are at work and the longer and deeper discounts will help them manage budgets through the Autumn and in the run up to Christmas.
The new pay rates will be effective from 16 October and it is expected that 127,000 hourly paid colleagues across retail, local fulfilment centres and customer service contact centres will benefit.
The additional increase will not affect the timing of the next annual pay review, which will go ahead in the new financial year.
For the first time, Sainsbury’s has launched its biggest ever September price investment of £65 million. This is part of its two-year plan to invest £500 million in low prices by March 2023.
“Every day, I am hearing from colleagues who are really feeling the pressures of the rising cost of living,” Sainsbury’s chief executive Simon Roberts said.
“That’s why we are doing everything we can to help our colleagues as they face rising bills and living costs this autumn by investing £25 million into a package of support, including an early pay increase. This is the first time we have given two pay rises in the same year.
“Our top priority is to support our customers and colleagues. We are proud of our track record on colleague pay and, with this latest package of an additional pay rise, free food at work and bigger colleague discounts, we are very focused on doing as much as we can to help our colleagues and their families through this autumn and winter.”
Meanwhile, Sainsbury’s 10% staff discount has increased to 15% for five days around payday.
This year, Sainsbury’s will have invested in three times as many 20% discount days as last year. To help colleagues plan their Christmas shopping, Sainsbury’s is also increasing colleague discount at Argos to 15% for one day every payday Friday until Christmas, starting from 23 September.
