Tesco Bank has given more than 3,400 of its staff a £1,250 pay increase, on a full-time equivalent basis, to help with the increased cost of living.
More than 90% of the bank’s workforce are eligible for the increase, which was made effective from 8 January.
The uplift to salaries, which followed discussions between Tesco Bank and both the USDAW and Unite trade unions, is in addition to the bank’s annual pay review, which will follow in May as usual.
Tesco Bank chief executive Gerry Mallon said: “The rising cost of living is having an impact on households across the country, and we’ve been listening to colleagues about how this is affecting them.
“That’s why we’ve taken action and awarded a permanent increase to base pay for the majority of our colleagues.
“The salary increase aims to provide sustainable, long-term support to colleagues, including our contact centre colleagues who show great commitment to helping our customers in the current economic climate.”
Launched in 1997, the supermarket's banking arm now has more than five million customers.
The bank operates from offices in Edinburgh, Glasgow, Newcastle and Reigate.
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