Tesco pumps millions into pay rises for store staff

Tesco is investing £180m into increasing pay for thousands of its store employees from this month.

Staff in the retailer’s supermarkets will see their hourly pay rise to £12.45 at the end of March and £12.64 in August. This will increase to £13.66 and then £13.85 in London.

The new pay rates represent a rise of 5.2%, which retail trade union Usdaw said will widen the gap between the Real Living Wage.

The grocer will now provide the colleague Clubcard discount with no cap for staff and their second Clubcard holder, replacing the previous £2,000 allowance.

The union also noted that Sunday premium payments will be removed for those colleagues that still receive them to bring Tesco in line with other retailers, with eligible colleagues receiving a one-off payment to protect their earnings.

Tesco UK chief executive Matthew Barnes 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.”

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