Tesco staff will have their pay increased to more than £10 this summer, the supermarket has announced.
The move will see Tesco workers paid “the highest hourly rate of pay in the sector”.
So, exactly how much will workers be paid, when will the pay increase come into effect, and how do Tesco wages compare to other supermarkets?
Here’s what you need to know.
How much will Tesco staff get paid?
Tesco staff will see their hourly wage increase by 55p an hour.
Workers are currently paid £9.55 an hour, but this will increase to £10.10 in the summer.
Tesco store workers in London will get a similar increase to bring their hourly pay up to £10.78 per hour.
The pay increase has been agreed following talks with union Usdaw.
The move will see workers paid at least 60p above the National Living Wage.
The National Living Wage, which applies to workers over the age of 23, increased in April from £8.91 per hour to £9.50 per hour from this month. For those aged 21 to 22, this amount has gone up to £9.18.
Who will get the pay rise?
The higher wage will be given to workers in Tesco stores and customer fulfilment centres.
The supermarket’s delivery drivers and click and collect assistants will also receive a 90p pay increase to £11 an hour.
When will staff get the pay rise?
Tesco, the UK’s biggest private employer, said the pay rise will come into effect from Sunday 24 July.
Daniel Adams, Usdaw National Officer said: “At such a difficult time, USDAW is pleased to have secured a pay deal that delivers the highest hourly rate of pay in the sector.”
How much do other supermarkets pay?
The wage increase from Tesco brings the supermarket’s pay in line with that given to Lidl and Aldi workers.
Lidl and Aldi became the UK’s highest-paying supermarkets earlier this year by paying their workers the same hourly rate of £10.10.
Morrisons also pays their workers a similar amount, and last year became the first UK supermarket to announce it would pay staff at least £10 an hour from April 2021.
In January this year, Sainsbury’s followed in Morrisons’ footsteps and said they would also pay their shop workers at least £10 an hour.
Jason Tarry, Tesco UK & ROI CEO said: “We are delighted to have reached an agreement with USDAW that recognises the vital role our colleagues play in our business now and in the future, giving them a well-deserved pay rise.”
When will Tesco review staff pay again?
Tesco said the pay rise is being given to staff in acknowledgement of the cost of living crisis, and will be reviewed again next year.
A statement said: “This new deal recognises the contribution our colleagues make to our business at a time when household budgets are under pressure.
“Given the uncertainty in the economic environment, this will be a one-year deal, rather than two-year, and we will review pay again with Usdaw in 2023.”
What other perks will Tesco workers get?
Alongside pay rises, Tesco is to increase its colleague clubcard discount allowance by £500.
This will allow staff to do their own weekly food shops at Tesco with a 10% discount, or 15% discount during every payday weekend.
Staff who work fewer than 16 hours a week have been assured that they will be offered any extra hours available before extra staff are recruited.
Tesco have also said that any new staff will be hired on contracts based on a minimum of 16 hours per week.