Asda unveils £80m investment into retail pay

Asda has announced an £80m investment in retail pay to increase hourly rates for store-based colleagues to £12.60 from October.

Circa 115,000 Asda Retail and Asda Express colleagues will receive an above inflation increase of 4.7% in three phases, taking rates from £12.04 to £12.60 per hour. Hourly rates for colleagues at stores inside the M25 will rise to £13.82.

Since it was acquired by the shareholder group in 2021, Asda said it has invested more than half a billion in retail pay, increasing the hourly base rate by 35% from £9.36 to £12.60.

In addition to the retail pay investment, Asda has confirmed a new and enhanced ‘family friendly’ policies for all colleagues, effective from July. This includes:

• Enhanced maternity and adoption leave pay | Increasing company maternity and adoption leave from 12 weeks to 26 weeks.

• Paternity leave | Doubling the duration from two weeks to four weeks at full contractual pay.

• Kinship carers leave | Introduction of a brand-new policy, providing 26 weeks paid leave for kinship carers for those caring for other children.

• Baby loss pre 24 weeks | A brand-new policy providing two weeks paid leave for those who experience pregnancy loss before 24 weeks.

• Asda also recently announced an increase in its colleague discount to 15%

Hayley Tatum MBE, chief people officer at Asda, said: “We’re proud to have invested more than £500m in retail pay over the last four years. Our colleagues are what makes Asda special, and this latest pay investment, plus an increased colleague discount and enhanced family friendly policies, recognises the key role they play in serving customers each day.”

The new rates were agreed with Usdaw, the trade union that holds the mandate to negotiate pay with Asda in Asda Express, Food Service and Leon.

Jayne Allport, Usdaw national officer, said: “We are pleased to have secured an above inflation increase and be able match the real Living wage for our members in Asda Express, Food services and Leon. The cost of living continues to be a key concern, so the business’ decision to respond in such a positive manner is welcome. Our members are key workers delivering essential services, it is only right they are fairly rewarded with a living wage.”