Tesco makes record £300 million investment in store staff pay
Tesco is making its biggest single investment in hourly staff pay by raising the base rate by 9.1%.
Following an agreement with the Usdaw trade union, the supermarket will be increasing the hourly pay rate for colleagues in stores from £11.02 to £12.02.
The new rate will come into effect from April 2024 and represents a record investment of more than £300 million for the supermarket in hourly colleague pay.
As part of the pay deal, Tesco will also be creating one London Allowance area at £13.15 per hour for stores within the M25. This is an increase from £11.95 in inner London and £11.75 in outer London.
Matthew Barnes, Tesco UK chief executive, said: “This represents another significant investment in our colleagues, building on the last two years of investment. We recognise the amazing work our colleagues do every day in serving our customers and we’re really proud to offer such competitive rates of pay alongside a great range of exclusive colleague benefits.”
Tesco has also announced an increase in paternity leave to six weeks weeks fully paid, as well as a rise in maximum company sick pay entitlement to 18 weeks for eligible staff.
