Every little helps | Tesco ups pay for third time in a year, and your staff may soon want a raise too

Tesco is upping its workers’ pay for the third time in less than a year, amid ongoing concerns about inflation and the cost of living.

Retail trade union Usdaw announced it had negotiated a pay deal with Tesco that will see the hourly pay rate for staff in stores and fulfilment centres rise by 72p to £11.02 per hour. Around 220,000 colleagues across the UK will benefit from this increase.

The new rate will come into effect in April 2023 and represents a 7% rise in base pay. This is on top of the increases made since July 2022, to support staff facing increased costs. As a result of this deal, over 10 months, base pay will have increased by nearly 15.5%.

The new pay rates apply to staff of all ages and exceeds the national living wage, which currently stands at £9.50 an hour and is increasing to £10.42 an hour from April for those aged 23 and over. It also takes staff above the Living Wage Foundation rate outside London of £10.90 and ensures all staff in stores in London boroughs are on their rate of £11.95.
Rival supermarket Asda recently announced a 10% pay rise for its staff, with Sainsbury’s which announced an increase in January.