Asda is handing its 110,000 hourly staff a 4% above inflation pay rise.
From 5 July, hourly pay will rise to £13.10 nationally, and £14.35 inside the M25, up from current rates of £12.60 and £13.82 respectively.
Asda will spread the increase over two stages, with pay increasing to £12.71 nationally and £13.93 inside the M25 from 1 April, in line with the increase to the national living wage.
The supermarket is investing £80m into the latest pay rise. It meant colleague pay had increased by around 40% under the ownership of TDR since 2021, Asda said.
“Our store‑based colleagues are at the core of our business and the role they play serving customers is central to our Formula for Growth turnaround plan,” said Asda chief people officer James Goodman.
“I’m pleased we’ve been able to give them an above‑inflation pay award and invest in this way. I’d also like to thank them for their continued hard work and commitment to making Asda better every day.”
Asda current lowest paying big four grocer
Asda is the latest supermarket to announce its annual pay increase, following an agreement with the trade union Usdaw. When implemented from July, the base rate nationally is 39p more than the national minimum wage for workers aged 21 and over.
However, the rates mean Asda is the lowest paying among the traditional big four to have announced pay increases, by 13p compared to Sainsbury’s national rate from 1 March, and by 18p compared to the national rate announced by Tesco last week.
Morrisons is yet to announce its proposed pay increase for 2026.
Read more: How much do supermarkets pay their staff?
Asda also offers a range of employee benefits including 15% staff discount, as well as a 20% discount on food to go while on shift.
The Leeds supermarket is looking for a fresh start with colleagues after a turbulent year, and earlier this month executive chairman Allan Leighton confirmed 9,500 salaried workers would receive their bonus as a thank you for their hard work, despite some missing their targets.
In January, The Grocer revealed that Asda had underpaid 53,000 current and former employees holiday and sick pay as a result of the fallout from the final stage of its Project Future IT upgrade to decouple its systems from Walmart.
The supermarket promised to pay back “every penny” with a discretionary interest rate of 12% added on by the end of February 2026.
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