UK supermarket chain Tesco has announced a 9.1% pay increase for its store workers, raising their hourly rate from £11.02 ($13.98) to £12.02.
The change, to take effect from April 2024, is a result of negotiations with trade union USDAW, and positions Tesco’s pay above the UK’s Real Living Wage.
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The new pay rate marks a record investment of more than £300m in hourly employee pay.
The move follows previous pay increases for Tesco’s hourly paid store employees, with a total increase of 26% since April 2022 – an investment of more than £750m.
Tesco is also enhancing its support for employees’ wellbeing and family commitments.
The supermarket chain announced an increase in paternity leave to six weeks at full pay, an industry-leading move, and an extension of the maximum company sick pay entitlement to 18 weeks for eligible employees.
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By GlobalDataTesco has introduced several benefits for its workforce since April 2023, including a virtual GP service and the right to request flexible working from the first day of employment.
It has also improved family leave policies, providing 26 weeks of fully-paid maternity, adoption and kinship leave.
Tesco employees receive a Colleague Clubcard discount of up to 15% on shopping, complimentary food in in-store canteens and a pay advance scheme.
The retailer is creating a London Allowance area with pay at £13.15 per hour for stores located within the capital’s orbital motorway, the M25. This is an increase from previous rates of £11.95 in inner London and £11.75 in outer London.
Tesco UK CEO Matthew Barnes stated: “This represents another significant investment in our colleagues, building on the last two years of investment. We recognise the amazing work our colleagues do every day in serving our customers and we’re really proud to offer such competitive rates of pay alongside a great range of exclusive colleague benefits.”
In February 2024, Tesco unveiled a new retail apprenticeship initiative aimed at supporting young people, particularly those from disadvantaged backgrounds, to kickstart their careers.
