Tesco hands store workers 7% pay increase

Tesco is to increase pay for store workers by 7% to a minimum of £11.02 per hour in its third increase over the past 10 months.

The supermarket giant, which employs about 340,000 staff, said the increase in hourly pay from £10.30 an hour will represent an investment of more than £230 million.

It will bring pay investment to a record £450 million over the past year after previous increases.

The retailer said the new minimum pay rate for store workers will take place from April 2 to “reflect the increasing costs our colleagues are currently facing”.

It comes a week after Asda announced a 10% pay increase for its hourly-paid store workers from July.

Tesco said its latest pay increase, which followed discussions with the Usdaw union, is also on top of investment into free food for staff in store canteens, a salary advance scheme and a discount of up to £1,500 a year off shopping.

As part of the pay deal, Tesco will also increase its “additional skills payment” for shift leaders by an extra 40p to £2.26, bringing their hourly rate to £13.28.

Jason Tarry, Tesco UK & ROI CEO, said: “For the second year in a row, we have made a record single-year investment in base pay for our colleagues.

“We know that many colleagues have felt the pressure of rising costs this year, and we are absolutely committed to supporting them with competitive base pay and exclusive colleague benefits.

“This agreement recognises the incredible work and dedication our teams show every day in serving our customers.”

Daniel Adams, Usdaw national officer, said: “This deal, which follows earlier agreements with Usdaw on additional investment outside of the normal annual negotiations and bringing the 2023 pay negotiations forward, represents a significant step forward for pay within Tesco retail.

“It represents a third increase in pay in 10 months and ensures that the business continues to respond positively to the significant pressures our members face.”