Tesco has announced that it will increase the hourly pay rate for colleagues in stores, from £12.02 to £12.45 from 30 March 2025, and again to £12.64 from the end of August.
This two-stage rate increase represents an above-inflation increase of 5.2%. However, the retailer has also announced plans to remove Sunday bonus payments, which it claimed was “in line with other retailers”. Bank Holiday premiums will be retained.
This latest £180m investment in colleague pay will mean hourly-paid colleagues will have seen a pay increase of 32% since April 2022, equivalent to a more than £900m investment, claimed the retailer.
The firm will also provide Colleague Clubcard discount with no cap for colleagues and their second Clubcard holder, replacing the previous £2,000 allowance. In addition, the retailer will increase the maximum company sick pay entitlement to 20 weeks for eligible colleagues.
Matthew Barnes, Tesco UK CEO, said:
“Our colleagues are our greatest asset, and this pay deal recognises the brilliant work they put in day-in, day-out to serve our customers. It also represents another significant investment in our colleague pay, which combined with our fantastic package of benefits, means Tesco continues to be a place to get on and thrive in a fulfilling and rewarding career.”
Daniel Adams, USDAW National Officer, said:
“It is a real achievement that Usdaw reps have been able to secure an above-inflation pay deal that builds on the negotiations of the last few years. Not only does it ensure a meaningful gap between the Tesco rates of pay and the National Living Wage in April, but it also means that in August, the basic rate of pay in Tesco will exceed the Real Living Wage rate outside of London and meet it within the M25. This, along with the other negotiated improvements, demonstrates the value of a modern and progressive relationship between independent trade unions and employers.”
The news follows a Co-op announcement earlier this month stating that colleagues would receive an above inflation pay award
