Hundreds of Tesco employees are set to receive a salary boost at the end of the month, thanks to a £200 million investment by the UK’s largest supermarket chain. Starting March 29, pay for both in-store workers and staff at online order fulfillment centers will rise by 5.1% to £13.28 per hour. Those working in London will see their hourly pay rise to £14.55, including a £1.27 supplement for employees within the M25 zone.
These wage increases coincide with the upcoming changes in the national minimum wage and living wage rates in April. Tesco’s pay hike will position its rates above the £12.71 minimum wage for workers aged 21 and above. In recent weeks, other major supermarket competitors have also revealed pay raises for their employees. Sainsbury’s is implementing a 5% wage increase, bringing the hourly rate to £13.23 nationally and £14.54 in London. Lidl has raised its entry-level rates to £13.45 per hour across the country and £14.80 in the capital.
Aldi is poised to become the top-paying supermarket in its sector by increasing pay for store assistants to £13.50 per hour nationally and £14.88 in London starting in April. Ashwin Prasad, Tesco UK’s chief executive, expressed appreciation for the dedication of their employees, stating that the pay raise is a significant investment in their workforce.
Additionally, Tesco announced plans to introduce a new domestic abuse policy later this year, which will include up to three days of paid leave for employees experiencing abuse. Daniel Adams, the national officer for the trade union Usdaw, praised the pay raise but noted that it widens the gap between Tesco’s pay rates and the national living wage. He also commended Tesco for being the first retailer to commit to providing paid leave to support staff facing domestic abuse, a move that could have a positive impact on those affected.