Tesco has revealed that it will offer its staff advances on their pay if they are struggling to pay bills amid the worsening cost-of-living crisis.
Amid a tight labour market, the supermarket has already raised wages twice this year to retain staff.
Under the new scheme, some 280,000 of its workers can receive up to 25% of their contractual pay early. Tesco stated that the idea was to help staff avoid having to take on expensive debt with high-interest payments, such as payday loans.
Tesco workers would have to pay a £1.49 fee per advance to its financial employee benefits partner Salary Finance. Staff are allowed one advance per pay period.
“We hope this helps to support colleagues, particularly in the run-up to Christmas,” said James Goodman, Tesco’s UK people director.
Earlier this week, Tesco announced that it was overhauling its ‘Reduced to Clear’ bays to support cash-strapped shoppers.
NAM Implications:
- The oldest one in the book…
- And a way to avoid expensive alternatives.
- One that employees will remember.
- Well done Tesco!
