Days after Marks & Spencer announced it was raising the hourly rate for its store staff by 5%, the John Lewis Partnership is hiking the pay for the workers in its supermarkets and department stores by 7.4%.
The £114m investment will see the group’s 65,000 staff receive a minimum rate of pay outside London of £12.40 an hour, up from £11.55 currently. Store workers within the M25 will see their rate increase from £12.89 to £13.85.
Employees who have contributed “exceptionally” to the business can also earn additional pay on top of the standard increase, meaning they could receive a pay rise of 9.4%.
John Lewis Partnership noted that over the last three years, it has invested a total of £295m in staff pay, with the standard hourly rate rising by 25%.
The move comes despite retailers facing new cost pressures from the impending rise in employer national insurance contributions.
“Our Partners are co-owners of our business and their service to our customers is what sets us apart, so we have chosen to make another very significant investment in Partner pay this year,” said Jo Rackham, Interim Executive Director, People.
“This signals our continued commitment to our Partners’ pay, taking our total investment over the last three years to £295m.”
Meanwhile, Co-op’s store staff have voted to accept an above-inflation pay award, which will see hourly rates increase 5% during 2025.
The convenience retailer’s rate of pay will increase in two steps, with a rise from £12.00 to £12.30 per hour from 1 April, then a further uplift to £12.60 from 1 August.
Kate McCrae, Co-op operations director, said: “This deal reaffirms our ongoing commitment to the Real Living Wage, and ensures Co-op is among the highest food retailers in terms of pay.
“We are a growing business, focused on delivering convenience and value for our colleagues, members, customers and communities. We truly value the dedication and hard work of our store teams, and recognise their commitment to bringing to life our co-operative difference in towns, villages and cities all across the UK.”
NAM Implications:
- Because they want to…
- …or because they have to?
