How much do supermarkets pay their staff?

Pay and benefits

The national living wage (NLW) has climbed faster than inflation with near consistency since its introduction in 2016, as the Low Pay Commission chases a target of making it worth two-thirds of median earnings. This year it is rising from April by 4.1% to £12.71 (see chart, below).

The real living wage – determined by the Living Wage Foundation and intended to reflect the true cost of living – is setting an even tougher pace, climbing this year by nearly 7%, to £13.45 nationally and £14.80 in London.

The minimum wage for 18 to 20-year-olds is climbing faster still, by 8.5% to £10.85 an hour, while that age group adjusts to the recent news that the government may not, as previously pledged, pay them the higher NLW by the next election.

 

Last year, Tesco, Sainsbury’s, Aldi, Lidl, Co-op and M&S were all matching or exceeding the real living wage both nationally and in London, then set at £12.60 and £13.85 respectively. Asda was (and is) matching it nationally but falling slightly short in London, at £13.82.

So far, Aldi and Lidl are the only two supermarkets to confirm they will match or exceed it again this year from March. For the second year, Waitrose has announced new rates from April that match the real living wage in London but not nationally.

Other supermarkets are still in talks and have yet to say how much they will pay from April, while Sainsbury’s has announced new rates falling below the real living wage.

 

“From our standpoint, that’s really concerning,” says ShareAction senior campaign officer Ruan Opie-Meres.

Opie-Meres says Sainsbury’s has set an example for the other listed retailers Tesco and M&S since 2022. That was when ShareAction’s coalition of investors in Sainsbury’s filed a resolution that it should become a Living Wage Foundation accredited employer. It led to a shareholder consultation, after which the supermarket committed to uplifting London workers to the real living wage.

“From that point, we’ve seen the company – followed by Tesco – matching the real living wage both in London and nationally,” says Opie-Meres.

That’s until recently. Last year, Sainsbury’s delayed matching the real living wage until August, in the second of two pay rises for 2025, both set out in its spring pay review. Tesco followed suit with a similarly staggered pay rise for the year. Of the listed retailers, only M&S matched the real living wage from April.

“We had hoped that was a temporary measure by Sainsbury’s to allow them to cope with costs,” says Opie-Meres. “The investors we work with are really disappointed that our worries have now played out, in that they have not made a similar commitment this year to uplift workers to the real living wage in August.

“Given Sainsbury’s and Tesco have been in lockstep, we wouldn’t be surprised if they go a similar way.”

ShareAction is more hopeful of M&S, since last year it was “really proud to be the only [listed] supermarket paying the real living wage from day one of their pay review in spring”. “We hope they will again.”

Opie-Meres says it is “understandable” that supermarkets would want to delay in a challenging macroeconomic environment. But he adds “there are things to say about that”, pointing to the earnings ratio of CEO to median paid worker at the same company. “At Sainsbury’s it was 1:195 last year”, meaning Simon Roberts, on more than £5m, earned 195 times more than a median paid Sainsbury’s worker. “At Tesco it was 1:373. At M&S it was 1:261.” “It shows the imbalance in these companies.”

Read more:

• Inside the shrinking fmcg wage purse: why isn’t pay keeping pace?

• Supermarket progress on gender pay equality – and who’s gone backwards

Private equity

Not subject to the same shareholder scrutiny are PE-owned Asda and Morrisons. Morrisons only increased rates enough to keep up with the NLW last year, and union Usdaw is balloting members over its failure to commit to more this year. “Morrisons should be paying our members significantly above minimum wage rates,” says a spokesman for the union.

Usdaw’s negotiations with Asda over its 2026 pay rate are due to start in March.

GMB national officer Nadine Houghton notes “Asda has clearly been struggling” with its market share plummeting from 12.3% to 11.5% in a year [Worldpanel 12 w/e 25 January 2026]. “So it wouldn’t surprise me if they’re waiting to see how things transpire.”

Houghton cautions against a “race to the bottom”.

As evidence that would not be good for business, Opie-Meres points to the Living Wage Foundation’s latest survey of accredited employers (of which major supermarkets count nil). It found 94% said they had benefited, 87% said it had boosted their reputation, 66% said it had differentiated them from competitors, and 62% said it had improved recruitment.

Competition for labour

That reported recruitment boost might explain why fast-growing Aldi and Lidl, each with a pipeline of 40 new stores to find staff for in 2026 alone, have been the highest payers for more than five years, consistently offering at least the real living wage. Days before their spring rises come into effect in March, Aldi this week announced rates set to comfortably make it the UK’s highest-paying supermarket, of £13.50 nationally and £14.88 in London.

Waitrose, offering the 2026 real living wage in London, is two years into a five-year, £5bn investment programme in opening 100 new convenience stores, with a focus on the capital.

For Opie-Meres, the link between expansion and high-paying underlines a “comparative advantage of paying workers more”.

“Better-paid staff are going to have higher morale and be happier in their work and also outside work because they can save and have leisure time.

“And that’s really important to the productivity of the company.”

Who pays best?

With the introduction of £13.50 base rates from April 2026, Aldi is set to become the highest paying of the supermarkets.

Traditionally, Lidl and Aldi battle it out to become the highest-paying and typically match each other or come within pence per hour. On perks, though Aldi does offer paid breaks, it doesn’t offer its colleagues a discount in store, a bonus scheme or discounted meals. 

So, where do employee pay and perks stand now?

Supermarkets are paying more than ever before. Below we take a look at their most recent wage announcements, as well as the perks offered by each retailer.

Aldi
£13.50/hour (£14.88 within the M25)

As of 1 March 2026, the minimum hourly entry level rate for Aldi store workers rises to £13.50 nationally. Inside the M25, it rises to £14.88. Aldi also offers paid breaks, which it says are worth £1,500 a year to the average store worker. 

Discount and bonus

Aldi does not offer its employees free meals, a staff discount or a bonus.

Parental leave entitlement

Aldi says it offers 26 weeks of maternity leave at full pay. Parental leave varies by role.

Aldi’s other benefits

• Flexible working to suit personal needs
• Access to a 24-hour employee assistance programme
• Health cash plan
• 24/7 virtual GP
• Gym membership discounts
• Discounted cinema tickets
• Money off holidays and other savings;
• Free mortgage advice via an independent financial adviser

Asda
£12.60 (£13.82 in London)  

From October 2025, the entry-level hourly rate for Asda store workers will rise from to £12.60 nationally and £13.82 inside the M25. It does not provide paid breaks.

Discounts and bonus

Asda says it offers 10% discounts to employees in stores, with up to 30% on insurance, tyres, pharmacy services and Asda Mobile. It has staff bonuses and offers discounted meals.

Parental leave

Asda offers 26 weeks of maternity and adoption leave at full pay. Paternity leave at full contractual is currently set at four weeks. Primary kinship carers (those who take on long-term care for a child who can no longer live with their parents) will also be entitled to 26 weeks’ company leave and pay.

Asda’s other benefits:

• 24/7 access to a private GP service for colleagues, their partner and children
• Free eye tests
• Eight free physiotherapy consultations for colleagues and their partner
• Legal and general care concierge, including free expert information on later life care for loved ones
• Mortgage Advice Bureau support
• Unlimited mental health support for colleagues and their partner
• Flexible wage services and saving schemes

Co-op
£12.60 (£13.85 in London)

From 1 August 2025, the Co-op’s minimum hourly rate for customer team members will rise to £12.60, which it says equates to £13.46 per hour for a full-time customer team member when factoring in paid breaks.

Discounts and bonus

The Co-op says it offers 30% off selected Co-op own brand products plus 10% off branded products, as well as discounts on its other services such as insurance, legal services and funeral care.

It says it does have a bonus scheme. Co-op does not offer free meals.

Parental leave

Co-op offers 20 weeks of maternity leave at full pay and four weeks of paternity leave at full pay.

Co-op’s other benefits:

• Flexible pay
• Savings options with two credit unions
• A range of guidance and support from Wagestream
• Telus Health and an employee assistance programme
• Compassionate leave policy, including up to 10 days paid leave for bereavement
• A dedicated perimenopause and menopause policy providing support, monthly coffee mornings and talks from menopause experts

Iceland

Iceland advertises roles at varying pay rates across the UK. It does not provide paid breaks.

Discounts and bonus

Iceland employees receive a 15% staff discount. It does not have a bonus scheme.

Parental leave

Iceland offers 14 weeks of maternity leave at full pay. Its paternity leave policy offers one week at full pay and a further week at statutory pay.

Iceland’s other benefits:

• Healthcare scheme for all colleagues
• Mental and physical welfare support (through GroceryAid and others)
• Bereavement and fertility support
• Reward & recognition activity for all colleagues, including long service awards
• Refer a friend scheme
• Access to specialist services such as Alvie, which supports colleagues diagnosed with cancer
• Employee representative group
• Christmas vouchers

Lidl
£13.45/hour (£14.80 within the M25)

From 1 March, Lidl’s national rate is set to rise from £13 to £13.45. Inside the M25, its rate is set to rise from £14.35 to £14.80.

Discounts and bonus

Lidl offers a 10% discount card to staff and discounted meals while on shift. It also promises employees heading off on a form of parental leave a baby gift full of Lidl’s range of baby products.

Parental leave

Lidl offers the best of the bunch in terms of maternity leave, at 28 weeks fully paid and two weeks of paternity leave at full pay.

Lidl’s other benefits:

• Award, bonus and meal to mark 10, 25 and 40-year anniversaries with Lidl
• Subsidised canteens
• Baby essentials bundle ahead of maternity/paternity leave
• 15% off antenatal courses
• Voluntary private medical and dental insurance
• Free flu jab every year
• Life assurance
• Free access to a 24/7 counselling service
• Sabbatical leave of up to three months, following five years’ service

M&S
£12.60 (£13.85 in London)

From 1 April 2025, Marks & Spencer’s hourly rate for store assistants rose from £12 to £12.60 nationally and from £13.15 to £13.85 in London. It does not provide paid breaks.

Discounts and bonus

M&S offers free meals to staff, as well as 20% discounts on its products and interest-free finance on tech products and a bonus scheme. 

Parental leave

M&S offers 26 weeks of maternity leave at full pay. For paternity leave, it draws with Tesco, offering a generous six weeks fully paid.

Further M&S benefits:

• Life cover up to 4x salary
• 24/7 virtual GP service and employee assistance programme for colleagues and family
• Free eye tests; access to six free physio sessions
• Check4Cancer support and free screenings for colleagues at higher risk
• 25% off gym memberships and online fitness classes
• Cycle to Work scheme
• Interest-free season ticket loans
• Option to purchase additional holiday

Morrisons
£12.21/hour (£13.06 within the M25)

Morrisons says its established rate for a customer assistant all is £12.21 per hour, while supermarket staff within the M25 have a location supplement of 85p per hour on top. It does not provide paid breaks.

Discounts and bonus

The company also offers discounted meals, a 15% discount for staff, plus a 10% discount for a nominated member of their family or friend up to a £1,000 cap.  It does not offer a bonus scheme.

Parental leave

Morrisons offers 26 weeks of maternity leave at full pay. It offers four weeks of paternity leave in the form of two weeks at full pay and a further two at half pay.

Morrisons other benefits:

• 10% discount card for leavers with long service (25 years)
• Discounts with 1,500+ retailers and service providers through MyPerks
• Giving to charity via pay (saving tax and NI); life assurance
• Mental, physical and preventative health support
• Financial education, educational tools and loans (deducted from pay)
• Cashback on prescriptions, glasses & contact lenses, physio
• Digital GP appointments

Sainsbury’s
£13.23/hour (£14.54 in London)

From March 2026, hourly pay will rise to £13.23, from £12.60, nationwide, and to £14.54, from £13.85 in London. It does not provide paid breaks.

Discounts and bonus

Sainsbury’s offers staff 10% discounts in Sainsbury’s, Argos and Habitat and an annual bonus scheme. It also provides free meals.

Parental leave

Sainsbury’s offers 20 weeks of maternity leave at full pay and four weeks of paternity leave at full pay.

Sainsbury’s other benefits:

• 24/7 access to employee assistance programme, including pay advance, affordable loans and savings help, advice on legal and counselling issuesOnline wellbeing platform
• Financial, physical and mental health wellbeing resources
• Free staff meals
• Cycle to Work scheme
• Health/dental plans to claim back costs
• Discounted gym access
• Free period products in colleague bathrooms

Tesco
£12.64/hour

From August 2025, Tesco store workers will receive £12.64 an hour nationally, up from £12.02 at the beginning of the year, and £12.45 between March and July. It does not provide paid breaks.

From August 2025, it scrapped the Sunday premium for colleagues who joined before 24 July 2022, which boosted pay by 10% per hour worked on a Sunday.

Discounts and bonus

Tesco’s discounts programme offers colleagues 10% off in Tesco and One Stop stores as standard, with additional discounts around pay day up to a £2,000 limit. It offers further discounts of up to 50% on its pharmacy, F&F, Tesco Mobile, Vision Express and Tesco Bank insurance. It also provides a free meals and operates a bonus scheme.

Parental leave

Tesco offers 26 weeks of maternity leave at full pay. For paternity leave, it draws with M&S, offering a generous six weeks fully paid.

Other Tesco benefits:

• Virtual GP service
• 24/7 access to wellbeing services including sleep therapists, nutritionists, counsellors, exercise coaches and physiotherapists
• Right to request flexible working from day one
• Free food in staff canteens
• Pay advance scheme to receive up to 25% of contractual pay early
• Save As You Earn colleague share scheme
• Retirement savings plan
• Cycle to Work scheme

Waitrose
£12.40/hour (£13.85 in London) 

Waitrose is to pay store staff £12.40 an hour nationally from 1 April. That’s up from £11.55. Meanwhile, those inside the M25 will receive at least £13.85, up from £12.89. It does not provide paid breaks.

Discounts and bonus

Waitrose offers staff members free meals. Its discount scheme gives employees 25% off in John Lewis (12% off electrical products, with some exceptions) and 20% in Waitrose. JLP also offers staff a bonus as an share-out of profit determined by the group’s performance. The 2021/22 bonus was 3% of pay.

Parental leave

For both maternity and paternity leave, Waitrose offers 14 weeks at full pay and a further 12 weeks at half pay. That makes Waitrose’s paternity offer the pick of the bunch.

Other Waitrose benefits:

• Free entry to attractions and discounts/deals on restaurants and theme parks
• £60 ticket subsidy for theatre, concerts and events
• £250 towards personal development courses
• Subsidised canteens; bonus scheme when profitability allows
• Financial hardship grants and interest-free loans
• Physio and occupational health practitioners
• Free access to a digital GP and mental health platform

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