Tesco hourly workers in London will be paid £11.95 per hour, after retail union Usdaw negotiated a new pay deal with the supermarket.
Employees within London will receive almost £1 more per hour than under the previous agreement, which offered pay of £11.02.
However, those working within the M25 but outside of London itself will be paid £11.75. These workers had previously received the same pay as workers in London boroughs.
Workers in the rest of the UK will be paid £11.02 per hour, up from £10.30.
The new pay rates will come into effect on 2 April, and will apply to around 220,000 employees.
“For the second year in a row, we have made a record single-year investment in base pay for our colleagues,” Tesco UK & Ireland CEO Jason Tarry said. “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.”
Usdaw negotiated earlier pay rises in April and in October of 2022. This means that pay has increased by £1.47 per hour in the space of 10 months.
“This deal, which follows earlier agreements with Usdaw on additional investment outside of the normal annual negotiations and bringing the 2023 pay negotiations forward, represents a significant step forward for pay within Tesco retail,” Usdaw national officer Daniel Adams said.
“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 follows Asda announcing a 10% pay increase for its own employees last week, bringing hourly pay above £11.
