Tesco has become the latest major retailer to announce an above-inflation pay rise for its store staff.
The supermarket’s minimum hourly pay rate will increase by 5.2% over the next six months, rising from £12.02 to £12.45 on 30th March and then to £12.64 at the end of August.
The £180m investment by Tesco means its staff will receive well over the new national living wage rate of £12.21, which will come into effect on 1 April.
However, while above inflation, the new pay deal will see the removal of a 10% bonus paid to staff when they work a shift on a Sunday.
Tesco, which had already removed the perk for new starters, noted that those affected by the loss of pay would receive a one-off payment to cover the next 18 months as it phased out the Sunday premium.
The group’s UK CEO, Matthew Barnes, said: “Our colleagues are our greatest asset, and this pay deal recognises the brilliant work they put in day-in, day-out to serve our customers. It also represents another significant investment in our colleague pay, which combined with our fantastic package of benefits, means Tesco continues to be a place to get on and thrive in a fulfilling and rewarding career.”
In recent weeks, Lidl, Aldi, Co-op and the John Lewis Partnership have all announced significant increases in pay. This comes despite retailers facing new cost pressures from the impending rise in employer national insurance contributions.
NAM Implications:
- The only issue might be whether:
- Sunday shifts might be a bit light now (on principle).
- Or in 18 months when the Sunday Bonus ends…
