Banking group Natwest has awarded more than 22,000 of its lowest paid employees in the UK and all global locations an average pay rise of £1,000 on a full-time equivalent (FTE) basis, effective from 1 September.
In the UK there will be an additional 4% salary increase for employees earning under £32,000 FTE, amounting to around 16,000 people. A similar approach will be applied to employees based in the Channel Islands, Isle of Man and Gibraltar.
According to the bank, these increases aim to provide sustainable, long-term support to those who are feeling the greatest impact from current cost-of-living challenges, applying consistent principles while still reflecting that economic conditions vary in each of its locations.
These changes, which followed collaboration with a range of stakeholders, including Employee Representatives Unite and the Financial Standards Union, were made on top of increases announced earlier in the year, and will be in addition to any rises in 2023.
The pay deal agreed in February 2022 introduced salary increases of 3.6% and was agreed with employee representatives and trade union Unite. This was the bank’s largest investment in pay for its junior colleagues for five years, and saw the majority of staff awarded an increase of at least 4%, while 9,000 received at least 5%.
Alison Rose, chief executive officer at NatWest, said: “The continued rise in the cost-of-living is impacting people, families, and businesses in the UK and across the world. Our focus is on working with our customers, colleagues and communities and providing proactive support to those who need it most.
“That is why we are taking targeted action and awarding a permanent increase to base pay for our lowest paid colleagues across the globe. We are also aware that many of our customers and communities are feeling the strain, which is why we continue to develop our support for them, just as we did throughout the pandemic.”