Tesco raises pay by 9.1% amid ‘record’ £300m investment
The supermarket reached an agreement with trade union USDAW that will see the hourly pay rate increase from £11.02 to £12.02
Tesco has increased base pay for staff by 9.1%, amid a “record” investment of more than £300m in hourly pay.The supermarket reached an agreement with trade union USDAW that will see the hourly pay rate increase from £11.02 to £12.02. The new rate will come into effect from April 2024.
The news follows the “significant” investment Tesco has made in hourly pay in recent years following previous negotiations, including a total increase of 26% in hourly pay announced since April 2022, equivalent to a more than £750m investment.
Alongside the pay increase, the supermarket also announced an increase in paternity leave to an “industry-leading” six weeks fully paid, alongside an increase in maximum company sick pay entitlement to 18 weeks for eligible staff.
As part of this pay deal, Tesco will also create one London Allowance area at £13.15 per hour for stores within the M25. This is an increase from £11.95 inner London/£11.75 outer London.
It will also increase the annual Colleague Clubcard discount allowance to £2,000, up from £1,500, which staff can also share with a family member in a second household.
Matthew Barnes, Tesco UK CEO, said: “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.”
Daniel Adams, USDAW National Officer, said: “This deal not only delivers an inflation-busting increase for Tesco employees, but it also demonstrates the value of progressive employers engaging constructively with trade unions at a time when the cost-of-living pressures continue to be keenly felt by our members.
“We welcome the company’s positive response through our negotiations which have resulted in the largest investment in pay in a single year, with the highest entry rate for store employees of any major supermarket.”
He added: “Moreover, at a time when some employers are rowing back from commitments they have made around the Real Living Wage, this deal ensures all rates of pay for store employees continue to be either at or above the Real Living Wage.”
