Tesco staff wages to increase by up to 3%

Tesco UK store-based staff to receive a pay increase of up to 3% as part of a two-year pay deal

The deal has been established alongside trade union Usdaw & staff representatives.  From 3 July 2016, Tesco will apply a new base pay rate of up to £7.62 per hour, up from £ 7.39, to all established store employees.  This new pay rate is 0.42p higher than the national living wage rate of £7.20 per hour which will come into force in April, for workers aged 25+.

New store-based employees at Tesco will also receive a pay increase from £7.02 an hour to £7.20 an hour from March, and then to £7.24 from July.

A new system has been put into place for premium payments, paying all staff time and a half for Sundays & bank holidays – also to come into effect from July this year. Any employees who are negatively impacted by the changes will be supported with a lump sum transition payment worth 18 months of the difference in their pay.

Matt Davies, chief executive officer at Tesco UK and Ireland, said: “We’ve spent a lot of time working with Usdaw and colleague representatives to understand what’s important to colleagues. Together, we’ve agreed one of the highest pay and benefits packages in retail for store colleagues, and introduced a simpler pay structure, including one approach to premium payments.

“As well as an increase in pay which puts our hourly rate well above the government’s national living wage, we remain absolutely committed to rewarding our colleagues with a pay and benefits package they really value, including a pension, colleague discount and 5% turnaround bonus.

“I’d like to thank colleagues for their customer focus, passion and hard work in serving our customers a little better every day.”

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