Supermarket chain Asda has joined its rivals in increasing the pay of its frontline shop staff as the cost-of-living crunch continues to ramp up.

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Asda claims its new hourly rate for shop workers represents the “best deal” for staff among UK grocers

The grocery giant has announced it will up pay for shop workers to £10.10 an hour amid pressure to bring wages in line with other supermarkets that have increased their pay in recent months.  

From July 1, Asda will increase the hourly pay of 120,000 of its workers from £9.66 to £10.10 – 60p more than the living wage. 

Asda said that coupled with a 10% discount in stores for staff and a potential £400 annual bonus, this represented the “best deal” for staff among the UK grocers. 

It represents the second pay rise for Asda workers this year, after wages jumped from £9.36 to £9.66 an hour in April, following tax increases. 

The announcement comes as part of a £73m package of measures announced by Asda to alleviate the financial pressures being felt by millions of households. 

Yesterday, Asda announced it would drop and freeze prices on 100 essential items and branded products. 

Mohsin Issa, co-owner of Asda, said: “We know that household budgets are being squeezed by an increasing cost of living and we are committed to doing everything we can to support our customers, colleagues and communities in these exceptionally tough times.”