Tesco announces new pay deal for store staff
The deal will see hourly rates rise by 10.5% over the next two years, from the current rate of £7.62 to £8.42 an hour by November 2018.
Tesco said the increases, alongside its benefits package including pension and bonus plan, will take the average store team member to an equivalent hourly rate of £9.52 by November 2018.
The supermarket will also introduce an improved maternity package from October 2017 which will see an additional 14 weeks’ half pay for all staff. The eligibility period for this will reduce from two years to one year from July 2018.
Matt Davies, chief executive of Tesco UK, said: “This reward package sees our biggest investment in store pay for a decade, and gives colleagues a sustainable pay deal that rewards them for everything they do, while allowing us to also attract new talent.
“We also want to do all we can to help working parents and that’s why we are proud to offer a much improved maternity package to our colleagues.”
Tesco also said it will continue to offer premium payments for Sunday and bank holiday shifts with staff receiving time and a half for the shifts until July 2018, when the payments will change to time and a quarter.
The supermarket said that the new agreement will leave 97% of staff better off. Any staff negatively impacted by the changes will be supported with a lump sum transition payment worth 18 months of the difference in pay, paid in July 2018.
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