Tesco has announced it will increase pay by 7% from £10.30 to £11.02 per hour.
The rise will affect its store workers and becomes the third increase for Tesco employees in the last 10 months. The new rates, which will come into effect from April 2023, will also see the launch of two new London allowance areas to help affected employees meet the additional costs of living in the capital.
The pay increase applies to staff of all ages and will take the hourly rate over the national living wage threshold, which is currently £9.50 an hour.
Tesco UK and Ireland CEO Jason Tarry said: “For the second year in a row, we have made a record single-year investment in base pay for our colleagues. We know that many colleagues have felt the pressure of rising costs this year, and we are absolutely committed to supporting them with competitive base pay and exclusive colleague benefits.’
The Workers Union welcomed the pay increase but called for further action to be taken to address issues such as insecure work and low pay in the retail sector. A spokesperson for the organisation said: ‘Tesco’s decision to pay their staff more is a commendable step in the right direction, but there is much that still needs to be done to ensure that retail workers get a better deal from their employers.’
Shop not Drop
The supermarket giant’s decision to increase wages follows similar moves made by its competitors. Aldi announced a pay rise of 15% for its employees in January, while ASDA will increase pay for workers by 10% this year.
It follows a period of challenging conditions for the retail sector, with many employees facing increased pressures due to the cost-of-living crisis. The COVID pandemic also highlighted the importance of essential workers in the retail sector, which led to fresh calls for workers to be paid a fair wage for their efforts.