Retailer Sainsbury’s is to increase pay for its 118,000 hourly-paid employees by 5% this year to ensure they are fairly rewarded with a living wage.
Employees across Sainsbury’s and Argos will see their pay rise from £12 to £12.45 per hour in March, and from £13.15 to £13.70 if based in London, with a further increase to £12.60 per hour in August and £13.85 for those based in London.
This will see the total salary for a full-time hourly-paid worker based outside London rise from £22,882 to £24,026 by August 2025, an increase of 58% since 2018.
According to Sainsbury’s, it is splitting the increase this year so it can navigate a challenging cost environment, while ensuring it continues to appropriately reward its employees.
Simon Roberts, chief executive of Sainsbury’s, said: “Our people are fundamental to achieving our Next Level Sainsbury’s plan and we are pleased to announce that we will raise pay for our hourly-paid employees by 5% in the year ahead, split into two separate increases to help manage a particularly tough cost inflation environment. We believe in rewarding our employees well for delivering leading service and productivity and we will be the best paying UK grocer from March.”
Bally Auluk, national officer at the union Usdaw, said: “The working relationship between Usdaw and Sainsbury’s continues to strengthen, and we are pleased that the employer has again worked closely with our union’s representatives, during the recent pay consideration meeting. The business has decided to make a pay award totalling 5%, despite lower inflation rates than last year and following on from previous significant pay increases.
“The cost of living continues to be a key concern for our members, so the business’ decision to respond in such a positive manner, by matching the real living wage once more, is a welcome one for our members.”
