Tesco Ireland will invest more than €18m (£15.7m) in colleague pay and benefits in 2026, including a 3% rise in hourly rates and additional spending on pension auto-enrolment.
From 1 January 2026, hourly-paid store and distribution colleagues will receive the uplift, taking the average hourly rate to €18.13 (£15.83). The company said the package includes €3.5m (£3.06m) a year to support more than 4,000 colleagues entering the State’s new auto-enrolment pension system, bringing its additional investment in pay and benefits to more than €15m (£13.1m) next year.
The retailer said it would also put €3m (£2.6m) into extra permanent working hours across large stores and online operations to support growing customer demand. It follows more than €30m (£26.2m) invested in pay and benefits over the past two years.
Tesco introduced several benefit changes in 2025, including removing a €2,000 (£1,746) cap on its annual colleague discount and continuing to promote its free virtual GP service, which it says saves colleagues more than €100,000 (£873) in GP fees each year.
Maurice Kelly, people director at Tesco Ireland, said: “Our colleagues are the heart of our business. This pay award and investment in additional hours for colleagues reflects our ongoing commitment to supporting their financial wellbeing and work-life balance.
“This, along with market-leading benefits for colleagues like free virtual GP care and our family leave policies, is ensuring Tesco remains a highly attractive place to work and leading the way in colleague salaries and benefits.”
Tesco Ireland employs more than 13,500 permanent colleagues across 188 stores, distribution centres and offices nationwide.
