Tesco to raise pay rate to over £10 an hour for store and warehouse workers

Tesco will increase its hourly pay for store staff and warehouse workers by 5.8%, from £9.55 to £10.10.

The retailer, which is the UKsaid the pay increase will take effect July 24.

It comes after a number of supermarket rivals to Tesco – including Sainsbury’s‘s, Morrison and Aldi – increased their base rate of pay.

The supermarket has also confirmed that it will increase the hourly rate for its customer delivery drivers and click & collect assistants to £11 from July.

“This new agreement recognizes the contribution of our colleagues to our business at a time when household budgets are under pressure,” the company said.

“Given the uncertainty in the economic environment, this will be a one-year deal, rather than two years, and we will review wages with the Usdaw (Union of Shop, Distributive and Allied Workers ) in 2023.”

Staff members will also see their Clubcard discount allowance cut from £500 to £1,500 for the year, Tesco said.

Jason Tarry, Managing Director of Tesco UK & ROI, said: “We are delighted to have reached an agreement with Usdaw which recognizes the vital role our colleagues play in our business today and in the future, by giving them a well-deserved pay rise, more access to overtime and establishing a long-term commitment and investment in their careers at Tesco.

“These investments in our colleagues are key to making Tesco what we really want it to be: a great place to work for everyone, a place that attracts and retains the best talent in the industry.”

Daniel Adams, Usdaw Country Manager, said, “At such a difficult time, Usdaw is delighted to have reached a salary agreement that not only offers the highest hourly rate of pay in the industry, but also the union’s New Deal for Workers campaign. give our members the right to request a ‘normal hours’ contract and guarantee a minimum contract of 16 hours in the future. »