Pret A Manger will give staff their third pay rise in a year, following other firms boosting wages amid labour shortages.
The coffee chain said the rise, which will begin in April, will amount to a 19 per cent increase in year-on-year pay for shop staff.
For entry level staff, the rise amounts to a 15% pay rise year-on-year.
By raising base pay to above the rate of inflation, the chain said its baristas would be among “the highest paid in the industry”, able to earn up to £11.80-£14.10 an hour based on location and experience.
It comes after around 7,870 Pret A Manger staff were given pay rises in April and December 2022.
Guy Meakin, Pret A Manger’s interim managing director, said: “As the cost of living continues to rise, we hope this latest increase in pay, and our expanded benefits package, goes some way in providing further support for our hardworking teams.”
Retailers across the country are raising wages as they try to retain staff struggling with near-record high living costs.
Staff at Tesco were given a seven per cent pay rise last month, the third increase in a year. The pay rise means store workers will be paid a minimum of £11.02 an hour.
Asda also said it would raise pay by 10 per cent. While Aldi and Lidl announced higher pay.
Long-term sickness after the pandemic and a lack of foreign workers to help fill available roles has seen the UK suffering a shortage of workers.
The rising cost of living has also lead to staff seeking better paying roles as well as widespread staff walkouts, leading to strikes in sectors such as rail, nursing and teaching.
However, some economists have warned that large pay increases risk making it harder to reduce the rate of inflation. Overall inflation, the rate at which prices rise, is at 10.1 per cent.
In February last year, Bank of England governor Andrew Bailey said workers should not ask for big pay rises in order to prevent prices rises becoming entrenched.
