Tesco workers across the UK will start receiving a pay rise from Sunday. The supermarket giant has announced an investment of more than £200 million in pay, with wages for in-store staff and online fulfilment centres rising 5.1% above inflation to £13.28 an hour.
Hourly wages for M25 workers will rise to £14.55 as Tesco increases its London location allowance from £1.21 to £1.27 an hour.
Ashwin Prasad, chief executive of Tesco UK, said: “Our colleagues play a vital role in delivering for our customers every day. “I’m delighted we are able to announce this pay deal, which reflects our deep appreciation for everything they do and represents another meaningful investment in our colleagues’ pay.”
The changes coincide with the new national minimum wage and living wage rates, which will come into effect in April.
Tesco is Britain’s biggest supermarket and its pay rise means its rates will rise above the £12.71 minimum wage for those aged over 21.
Rival supermarket giants have already announced pay rises for their staff in recent weeks.
Sainsbury’s staff are getting a 5% pay rise this month, taking hourly rates to £13.23 an hour nationally and £14.54 in London, while Lidl has raised entry-level rates to £13.45 an hour nationally and £14.80 in London.
Aldi is set to become the highest-paying supermarket among its competitors after it raised wages for store assistants to £13.50 an hour nationally and £14.88 in London starting in April.
Tesco has also announced it plans to institute a new domestic abuse policy later this year, which will include up to three days paid leave for workers who experience abuse.
Daniel Adams, national officer of trade union Usdaw, welcomed Tesco’s pay rise.
“This deal builds on negotiations over the past few years and delivers a real pay rise and widens the gap between Tesco pay rates and the National Living Wage,” he said.
The union is particularly pleased that the business has agreed to become the first retailer to provide paid leave for support staff who have experienced domestic abuse, which can make a huge difference to those affected.
Tesco said it has also increased the benefits it offers to staff over the past few years, including a virtual GP service and a competitive reward package which includes coworking Clubcard discounts of up to 15% on their shopping.
