Supermarket chain Tesco has announced that it will increase hourly pay for store employees to £11.02 as of 2 April, to reflect the increasing cost of living.
This 7% base pay rise is the third Tesco has given in the past 10 months, amounting to a more than £230 million investment. Over the past year, it has invested a combined total of £450 million in hourly pay.
The pay deal will also see shift leaders’ additional skills payment increased by an extra 40p per hour to £2.26, taking their hourly rate to £13.28, London boroughs-based workers’ allowance raised to 93p per hour, taking their basic pay plus location pay to £11.95, and the allowance of outer London-based staff – inside the M25 but excluding London boroughs – increased to 73p per hour, taking their basic pay plus location pay to £11.75.
The supermarket said it will continue to offer Sunday premiums for employees who joined before 24 July 2022, but will change the rate from 25% to 17% in order to maintain the value of Sunday working for those who are eligible.
Jason Tarry, chief executive officer of Tesco UK and Republic of Ireland, said: “For the second year in a row, we have made a record single-year investment in base pay for our staff.
“We know that many have felt the pressure of rising costs this year, and we are absolutely committed to supporting them with competitive base pay and exclusive employee benefits. This agreement recognises the incredible work and dedication our teams show every day in serving our customers.”
Tesco’s existing benefits package includes free food in store canteens, a salary advance scheme, a discount of up to £1,500 a year off their shopping, share schemes, the Tesco Retirement Savings Plan where it match contributions up to 7.5%, and an employee assistance programme (EAP).