Tesco makes ‘biggest ever investment’ in pay as hourly wages top £11 an hour

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Tesco has reached an agreement with shopworkers’ union Usdaw, which will push store staff pay above £11 an hour for the first time.

Tesco store worker

Tesco is investing £230m in pay

The supermarket giant said that from April 2, 2023, the base hourly pay of store staff would be increased by 7% to £11.02 an hour.

Tesco said this represented a £230m investment in pay and would be the third pay rise for staff in the past 10 months.

As part of the new pay rise, Tesco said shift leaders would receive an extra 40p on their existing additional skills payment, taking their hourly pay to £13.28.

Tesco has also added two additional London allowance areas. Staff working inside the M25 will now be paid £11.95 an hour, with Tesco staff working in other parts of the UK earning £11.75 an hour.

In addition, the grocer offers staff free food in its canteens, a salary advance scheme and a discount of up to £1,500 a year off their shopping.

Jason Tarry, Tesco UK and Ireland chief executive, said: “For the second year in a row, we have made a record single-year investment in base pay for our colleagues.

“We know that many colleagues have felt the pressure of rising costs this year and we are absolutely committed to supporting them with competitive base pay and exclusive colleague benefits.

“This agreement recognises the incredible work and dedication our teams show every day in serving our customers.”

Daniel Adams, Usdaw national officer, said: “This deal, which follows earlier agreements with the union on additional investment outside of the normal annual negotiations and bringing of the 2023 pay negotiations forward, represents a significant step forward for pay within Tesco retail.

“It represents a third increase in pay in 10 months and ensures that the business continues to respond positively to the significant pressures our members face. Furthermore, it demonstrates the value of employers engaging constructively with trade unions at this incredibly difficult time.”

The announcement comes days after supermarket rival Asda announced it would be offering store staff a 10% pay rise alongside a one-off bonus payment.

Asda said staff would be paid £11 an hour from April and £11.11 an hour from July. The bonus for staff who have been working for Asda for three months will be outlined at the end of February.

Asda co-owner Mohsin Issa said: “We appreciate the great job that our store colleagues do representing Asda while serving customers day in and day out.

“We know that rising living costs are affecting customers and colleagues alike and recognise we have a responsibility to support them during these challenging times.”