Tesco has announced a new way to help colleagues in the UK with unexpected or large expenses by offering them access to a low cost advance on their pay. The UK grocer has introduced a new colleague benefit that will enable around 280,000 colleagues to get up to 25% of their contractual pay early.
The advance, which costs just a single set fee of £1.49 per advance to financial employee benefits partner Salary Finance, is to help colleagues avoid having to take on expensive debt with high interest payments, such as pay day loans. Colleagues will be able to apply online for an agreed percentage of their earned pay following a simple process and the money will be paid to them within 24 hours and can often arrive within minutes. The amount will be automatically repaid at the next pay day, and they will be allowed to take one advance per pay period.
The latest benefit adds to a wealth of help and advice Tesco offers its colleagues to help with their financial wellbeing. The grocer announced a second pay rise in a year for hourly-paid colleagues in October, boosting pay by nearly 8% over the year. In addition, Tesco gives colleagues a 10% discount on groceries, which increases to 15% every pay day weekend. During the key Christmas shopping period from 13-19 December, the discount will double to 20%.
