Hundreds of thousands of Tesco workers will get a pay rise at the end of this month as part of a £200 million investment by the UK’s biggest supermarket.
Pay for shop workers and staff at online fulfilment centres will increase by 5.1% to £13.28 an hour from March 29.
Employees working in London will see their hourly allowance increase to £1.27, taking the hourly rate to £14.55 for those within the M25.
The changes coincide with the new national minimum wage and living wage rates coming into effect from April.
Tesco’s pay rise means its rates will sit above the £12.71 minimum wage for earners over 21 years old.
Rival supermarket giants have already announced pay increases for their workers over recent weeks.
Sainsbury’s workers are getting a 5% pay rise this month, taking the hourly rate to £13.23 an hour nationally and £14.54 in London, while Lidl has lifted entry-level rates to £13.45 an hour nationally and £14.80 in London.
Aldi is set to become the highest-paying supermarket among its peers when it hikes pay for store assistants to £13.50 an hour nationally and £14.88 in London from April.
Ashwin Prasad, Tesco UK’s chief executive, said: “Our colleagues play a vital role in delivering for our customers every single day.
“I’m pleased we’re able to announce this pay deal which reflects our deep appreciation for everything they do and represents another meaningful investment in colleague pay.”
Meanwhile, Tesco said it was going to set out a new domestic abuse policy later this year, which will include up to three days’ paid leave for workers who experience abuse.
Daniel Adams, national officer for trade union Usdaw, said the pay increase “extends the gap between the Tesco rates of pay and the national living wage”.
He added: “The union is also particularly pleased that the business has agreed to be the first retailer to commit to providing paid leave to help support staff who experience domestic abuse – something that could make a huge difference for those affected.”
