A host of retailers have recently announced pay rises in a bid to retain workers.
Earlier this week, The Co-op revealed its wages would increase to at least £12 per hour, while John Lewis also vowed to lift staff pay by 10% under a £116m investment.
Retail Gazette takes a look at the retailers boosting staff pay in 2024 below.
Aldi
This week Aldi doubled down on its commitment to never be beaten on pay by another supermarket as it revealed it would be bumping its hourly rates for the second time this year.
The new pay increase will see the national minimum rate for store assistants and deputy store managers rise from £12 to £12.40, and from £13.55 to £13.65 for those within the M25.
Aldi claims its £12.40 base rate is the highest level of entry pay by a British supermarket.
The second pay increase takes the supermarket’s investment into pay this year to £79m.
Aldi UK and Ireland boss Giles Hurley said: “We firmly believe that our colleagues are the best in the business, so it is only right that they remain the best-paid and we are committed to never being beaten on pay by any other supermarket.
The Co-op
The Co-op last week revealed it would hike staff pay to at least £12 per hour, as it brings its rates in line with the Real Living Wage.
From April 1, Co-op customer team members working outside London will be given a 10.1% pay rise to £12 per hour, while those in London will see wages rise from £12.25 to £13.15.
Furthermore, team leaders’ pay will increase from £12.10 to £13.32 per hour.
Co-op said the rise represented its biggest ever investment into pay, having boosted rates for shop workers by more than 20% in the last two years.
Co-op Food managing director Matt Hood said: “Our store colleagues are the heart of our member-owned business and we truly value their dedication and hard work.
“We’re proud to continue to be aligned to the Real Living Wage, which makes Co-op one of the top food retailers in terms of pay.”
Tesco
Earlier this month, Tesco revealed it would invest an additional £300m into staff pay as it boosts the hourly rate for store staff by 9.1%.
The supermarket agreed a deal with Usdaw to up its hourly base pay from £11.02 to £12.02 an hour as of 28 April, putting it ahead of the government’s national living wage rise to £11.44.
However, Tesco has since come under fire for implementing the change almost a month after the legal minimum wage for those aged 21 and over increases to £11.44 – leaving hundreds of staff earning less than the minimum wage.
The delay is permitted under HMRC rules, which ensure minimum pay rates are applied from the start of the “pay reference period” beginning on or after 1 April. which for Tesco is on 28 April.
Under the deal, Tesco is creating one London Allowance area at £13.15 per hour for shops within the M25, instead of the £11.95 rate for inner London and £11.75 for outer London areas.
Additionally, the supermarket is boosting its annual colleague Clubcard discount allowance to £2,000, from £1,500, and is raising the Sunday premium for staff who joined before 24 July 2022 from £12.89 to £13.22 per hour.
Ikea
In December, Ikea revealed hourly-paid workers would be given a 10% salary boost from January, while salaried co-workers would see their pay rise by 5%, representing an investment of nearly £10m.
The furniture giant injected £35m into a pay rise and bonus scheme, to help staff struggling with the rising cost of living.
Ikea pledged to meet the new Real Living Wage, with hourly-paid workers in London stores benefitting from the new £13.15 per hour rate and those outside the capital earning £12 per hour.
The retailer’s UK and Ireland country people and culture manager Darren Taylor said: “At Ikea, we’ve always been committed to caring for our co-workers, particularly during challenging times, which is why we’re announcing further investment to enhance their financial stability and security.”
Asda
Asda is investing a record £150m into pay in order to become the highest paying UK grocery retailer.
The supermarket’s investment will result in an 8.4% salary increase for hourly-paid workers, with rates rising to £12.04 from 1 July, and to £13.21 for workers inside the M25.
The fresh pay rates, which are subject to ballot, will surpass the government’s National Living Wage and the current Real Living Wage, as well as the London Living Wage recommended by the Living Wage Foundation.
Usdaw has advised its members to accept the new rates in a ballot closing on 15 March.
Asda said the ballot results and confirmation of the pay rise for Express store workers that have joined the grocer from former EG Group sites will be confirmed on 18 March.
The move follows a 10% boost for hourly-paid retail roles last year, and a 28% total rise in retail pay since the Issa brothers bought Asda in 2021, with a total investment of almost £415m.
Currys
Currys is investing an additional £13m into staff pay for hourly-paid workers.
Employees will now earn £12.33 per hour on average, with top performers pulling in an average of £13.95 an hour, after a 9.5% rise to their hourly rate.
Some workers will be able to earn even more than this as the potential for its bonuses is uncapped. Additionally, the electricals retailer is upping its minimum pay to £11.50 an hour, or to £12.50 for staff in the capital.
Currys says it has increased its minimum hourly wages for workers by 29% during the last three years.
It also said it is investing in “an extensive programme of learning and development,” designed to boost the skills and earning potential of staff.
Lidl
In January, Lidl unveiled a £37m investment into staff pay, raising entry-level rates for workers outside the M25 from £11.40 to £12, increasing to £13 with length of service.
Those working within the ring road saw their rate increase from £12.85 to £13.55 and rising to £13.85 over time.
The supermarket claimed the changes, which began on 1 March, would boost hourly pay “up to 17% higher” than the national minimum wage rise being rolled out in April.
Additionally, Lidl is introducing a bank holiday premium of £2 an hour and upped its nightshift premium to £3.50 per hour, while extending the timeframe in which it is payable by one hour.
The move represents Lidl’s third pay rise in a year, bringing total investment into pay to nearly £60m.
Sainsbury’s
At the start of the year, Sainsbury’s said it was improving staff pay by 9.1% to £12 an hour, and to £13.15 in London, following a £200m investment.
The uplift, which rolls out this month, will see 120,000 hourly-paid workers benefit from what it has claimed is its single largest ever investment into staff pay.
The cash injection brought the supermarket’s total investment to more than £500m over the last three years, with salaries increased by 50% since 2018 and 9% over the past year in line with the Real Living Wage.
The move made Sainsbury’s the biggest supermarket to pay workers the new Real Living Wage nationally and the London Living Wage at the time, with staff earning £1,910 more a year nationally and £2,290 a year in London.
John Lewis
John Lewis is understood to be elevating staff pay by 10% under a £116m investment, with the company set to confirm its record pay rise in its full-year results next week.
The increase, which will be effective from 1 April, is expected to see minimum pay rise to £12.89 in the capital and £11.55 per hour nationwide.
The move would make it the largest staff pay rise announced across the sector in March, beating Tesco’s £300m investment and Currys’ £13m boost.
B&Q
Last month, DIY giant B&Q said it would raise UK minimum hourly pay to £12.21 per hour and £13.55 in London, claiming this made it the highest paying major retailer in the country.
The 8% uplift puts the business’s salaries ahead of the government’s £11.44 national living wage for 2024, and higher than the Real Living Wage of £12 per hour.
The cash injection also builds on B&Q’s 8.9% year-on-year rise last year.
The move means 16,500 workers will receive an additional 90p per hour, totalling more than £1,700 extra per year for full-time staff.
B&Q pays the same minimum hourly rate to all staff aged 18 and over, including apprentices, despite the government’s national minimum wage rates varying by age.
The retailer’s CEO Graham Bell said: “This increase means our minimum hourly rate has increased by over 27% in the last 3 years and is currently the highest of any major UK retailer.”
Primark
Primark is set to raise hourly pay for retail staff by an average of 9.1%, effective from 1 April.
The business will up its average wages for all retail assistants across England, Scotland and Wales to £12 per hour, from £11 the year before.
For workers in London, salaries will rise from £11.51 in 2023 to £12.56.
The move means that workers have seen their hourly pay rise by more than 20% on average over the last two years.
Primark UK retail director Kari Rodgers said: “Our colleagues do a brilliant job every day serving our customers and we want everyone to be fairly rewarded and recognised for their hard work. We hope this pay increase goes some way towards demonstrating our continued thanks for all that they do in our stores and for our customers.”
Holland & Barrett
Holland & Barrett is boosting pay for workers by 9%, representing an almost 5% increase from the new National Living Wage.
Wages will rise from £11.00 to £12.00, and £11.95 to £13.00 for its London-based staff, effective from 1 April.
The pay hike follows growth of the business over the last year, as it seeks to attract new staff and retain workers.
Holland & Barrett UK&I CEO Anthony Houghton said: “We are delighted to once again be offering a substantial pay increase, alongside our strong benefits plan.
“We have exciting plans for the business in the year ahead, and look forward to continuing to provide health and wellness services to customers nationwide for another 150 years.”
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