The pay rise will come into effect on Sunday 6 March 2022 with the first payday being 8 April 2022.
For colleagues in inner London, this will increase the pay from £10.10 to £11.05 and from £9.75 to £10.50 in outer London.
Sainsbury’s is also creating additional payment rates for drivers. Groceries online drivers will now get £11.50 per hour, with a basic rate of £10 per hour plus an extra £1.50 per hour.
Meanwhile, Argos fast track delivery drivers will receive £11 per hour based on a base rate of £10 per hour plus an extra £1, up from 75p.
The new rates represent a £100m investment from Sainsbury’s in its store colleagues.
Simon Roberts, CEO at Sainsbury’s, said: “To kick off the New Year, I am pleased that one of the first things we are doing is investing in our colleagues and lifting our basic hourly rate of pay to £10.
“We have also listened to our colleagues and are enhancing our colleague discount scheme to help them plan their grocery spend and manage their shopping budgets better, which could save colleagues hundreds of pounds a year.”