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Tesco Announces Pay Rise For Store Staff

By Nithya Bose in Business News, posted March 6, 2024

Tesco has announced a pay rise for employees, joining other leading supermarkets in response to the rising minimum wage and to retain staff.

Starting in April, Tesco's hourly wage for store workers will increase from £11.02 to £12.02, with those in London receiving £13.15 an hour.

This will positively impact over 200,000 Tesco staff members.

The retailer ensures they all receive at least the voluntary Real Living Wage, surpassing the mandatory National Living Wage set to rise to £11.44 an hour in April 2024.

This move places Tesco alongside competitors such as Sainsbury's, Asda, Aldi, Lidl, and M&S.

The chains have recently updated their pay structures to offer a minimum of £12 per hour outside London.

Aldi started its pay increase in February, followed by Lidl and Sainsbury's in March, and M&S plans to implement its raise in April.

Meanwhile, Asda will introduce an interim raise to £11.44 an hour by 1 April before adjusting it to £12.04 an hour from 1 July.

Beyond pay increases, Tesco has also improved other employee benefits.

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The company announced an enhancement in paternity leave provisions, offering six weeks at full pay.

Additionally, Tesco has extended the maximum company sick pay entitlement to 18 weeks for qualifying employees.

To simplify its compensation structure, Tesco has unified the separate pay rates for inner and outer London into a single London Allowance.

It aligns with the voluntary London Real Living Wage at £13.15 per hour.

Daniel Adams, national officer at the shopworkers' union Usdaw, said: "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."

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