Asda announces 10% pay bump for store workers, to help bite back at cost of living crisis

British supermarket giant Asda has announced a 10% pay bump for store workers paid by the hour, in a bid to help tackle the impacts of the cost of living crisis on staff.

Rates will rise to £11 an hour from April and £11.11 from July, as the company says it will invest a record £141 million this year to boost hourly pay rates for more than 115,000 staff, working across its 633 stores.

All hourly-paid store staff who have been with Asda for more than three months will also receive a bonus payment. This follows an 8% pay increase for hourly-paid retail workers in 2022.

The new rates of pay are higher than the Government’s National Living Wage, which is increasing to £10.42 in April, and the voluntary Real Living Wage of £10.90 recommended by the Living Wage Foundation.

Asda co-owner Mohsin Issa said they appreciated the great job their store colleagues did serving customers day in and day out. “We know that rising living costs are affecting customers and colleagues alike and recognise we have a responsibility to support them during these challenging times.”

Issa said they were also stepping up their support for families, with the launch of a partnership with Quaker Oats to offer children a free warm breakfast in any of its 205 cafes during the February half term holidays.

Usdaw shop worker’s union spokesman Raymond Neal said they had raised the “significant pressures” members faced because of the cost-of-living crisis over the course of their ongoing negotiations with Asda.

“So we are pleased to have secured a significant increase that will make Asda the top-paying supermarket from July, and takes staff beyond the real living wage,” he said. “It’s been a tough time for retail staff, too many are struggling with rapidly rising prices, energy and fuel costs.”

Shopworkers provided an essential service keeping the nation fed, Neal said, and deserved “our support, respect and appreciation”.

“Most of all, they deserve decent pay and this deal is a welcome boost,” he said.