In response to the escalating minimum wage and the imperative to retain a competitive workforce, Tesco has joined the ranks of leading supermarkets in increasing staff pay.
The hourly pay rate for Tesco store workers is set to surge from £11.02 to £12.02 in April, with London-based employees receiving an elevated rate of £13.15 per hour.
Over 200,000 Tesco staff members are poised to benefit from this pay adjustment, which sees all employees receiving the voluntary Real Living Wage, surpassing the compulsory National Living Wage.
The National Living Wage, colloquially referred to as the minimum wage, is scheduled to climb to £11.44 an hour in April 2024, incorporating 21 and 22-year-olds for the first time.
Elevating minimum pay
In response to the evolving wage landscape, numerous major supermarkets have unveiled pay deals in recent weeks. Tesco now stands alongside Sainsbury’s, Asda, Aldi, Lidl, and M&S in elevating its minimum pay for staff outside London to £12 per hour.
Aldi implemented its increased pay structure in February, while Lidl and Sainsbury’s followed suit in March. M&S is set to initiate its pay rise in April, and Asda will institute an interim increase to £11.44 an hour on April 1, subsequently raising the rate to £12.04 an hour from July 1.
Beyond the wage adjustment, Tesco has also announced an enhancement in paternity leave, offering a fully paid six-week period. Furthermore, the supermarket will extend the maximum company sick pay entitlement to 18 weeks for eligible employees.
A single London Allowance
In a strategic move, Tesco has unified pay rates for inner and outer London employees, introducing a single London Allowance. The £13.15 per hour rate for this area aligns with the voluntary London Real Living Wage.
Daniel Adams, National Officer at the shopworkers’ union Usdaw, expressed his satisfaction, stating, “This deal not only delivers an inflation-busting increase for Tesco employees, but it also demonstrates the value of progressive employers engaging constructively with trade unions at a time when the cost-of-living pressures continue to be keenly felt by our members.”
Amelia Brand is the Editor for HRreview, and host of the HR in Review podcast series. With a Master’s degree in Legal and Political Theory, her particular interests within HR include employment law, DE&I, and wellbeing within the workplace. Prior to working with HRreview, Amelia was Sub-Editor of a magazine, and Editor of the Environmental Justice Project at University College London, writing and overseeing articles into UCL’s weekly newsletter. Her previous academic work has focused on philosophy, politics and law, with a special focus on how artificial intelligence will feature in the future.
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