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Tesco has announced that it has agreed to raise its staff’s hourly wages by 72p from £10.30 to £11.02.
This represents the third pay increase given out by the supermarket in the last 10 months and an investment of more than £230m. The combined investment in hourly pay over the last year is a record £450m.
The company is also increasing the additional skills payment for shift leaders by an extra 40p per hour to £2.26, taking their hourly rate to £13.28.
For staff working in London boroughs, their allowance will increase to 93p per hour, taking their basic pay plus location pay to £11.95.
Those working in Outer London (inside the M25 but excluding London Boroughs), their allowance will increase to 73p per hour, taking their basic pay plus location pay to £11.75.
This new rate will come into effect from an earlier date of 2 April 2023 and represents a 7% rise in base pay.
As well as investing in pay, the company will continue to provide its staff with free food in store canteens, a salary advance scheme and a discount of up to £1,500 a year off their shopping.
Jason Tarry, Tesco UK & ROI CEO, 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.
“This agreement recognises the incredible work and dedication our teams show every day in serving our customers.”
Daniel Adams, USDAW National Officer said: “This deal, which follows earlier agreements with the Union on additional investment outside of the normal annual negotiations and bringing of the 2023 pay negotiations forward, represents a significant step forward for pay within Tesco retail.
“It represents a third increase in pay in 10 months and ensures that the business continues to respond positively to the significant pressures our members face. Furthermore, it demonstrates the value of employers engaging constructively with trade unions at this incredibly difficult time.”
