Tesco in the UK Implements a 9.1% Pay Raise for Store Staff

Photo by Nathália Rosa on Unsplash

Tesco, the largest retailer in Britain, revealed plans to increase the hourly pay of its store workers by 9.1%, reflecting the heightened competition among major supermarkets in the UK to attract and retain their workforce, as reported by Reuters on March 5.


The pay raise represents a rate more than double that of inflation and aligns with the recent government-mandated minimum wage hike, exceeding the forthcoming 9.8% increase in the government’s national living wage, set at £11.44 (US$14.50) per hour.


An agreement between the company and the shopworkers’ union USDAW was reported to have taken place which would elevate the hourly base pay from £11.02 (US$14.00) to £12.02 (US$15.30) starting in April 2024, with Tesco’s London employees receiving £13.15 (US$16.70) per hour. 


The pay adjustment is expected to cost the company more than £300 million (US$381.10 million).


Additional Information:


  • The Bank of England is closely monitoring wage settlements, as substantial wage growth could contribute to inflationary pressures in the broader economy. 
  • In Britain, worker wages have only recently begun to outpace inflation, which was recorded at 4% in January, and remains twice the central bank’s target of 2%.
  • Sainsbury’s, the second-largest supermarket group in Britain, previously announced a 9% pay increase for its workers in January, setting an hourly rate of £12 (US$15.30) from March. 
  • Asda, the third-largest player, declared an 8.4% raise, with the new hourly rate of £12.04 (US$15.30) scheduled to take effect in July. 
  • Additionally, various other retailers, such as Marks & Spencer, Amazon, Aldi, Lidl, and Costa Coffee, have also revealed plans for pay rises in 2024.
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