Tesco has revealed it is investing a further £300m into staff pay as it raises the hourly rate for store employees by 9.1%.
The nation’s biggest retailer has struck a deal with shopworker union USDAW to increase the hourly base pay from £11.02 to £12.02 an hour in April – ahead of the government’s national living wage increase to £11.44.
As part of the deal, Tesco is creating one London Allowance area at £13.15 per hour for stores within the M25 instead of the £11.95 rate for inner London and £11.75 for outer London.
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The supermarket giant is also increasing the annual Colleague Clubcard discount allowance to £2,000, up from £1,500, and is increasing the Sunday premium for staff who joined before 24 July 2022 from £12.89 to £13.22 per hour.
Tesco UK chief executive Mathew Barnes said: “This represents another significant investment in our colleagues, building on the last two years of investment.
“We recognise the amazing work our colleagues do every day in serving our customers and we’re really proud to offer such competitive rates of pay alongside a great range of exclusive colleague benefits”.
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