tesco clubcard staff

Tesco has become the latest supermarket to announce a record investment in store colleague pay, bringing its hourly rate up to £12.02 per hour. 

It comes after an agreement with trade union Usdaw, which the retailer said would significantly increase the hourly pay rate for colleagues in stores, from £11.02 – putting it above the real living wage outside London of £12.

Tesco negotiates pay rates with the union for all its hourly paid colleagues in the UK.

The new rate will come into effect from April and represents a 9.1% rise in base pay and an investment of more than £300m in hourly colleague pay.

The negotiations have led to a total increase of 26% in hourly pay since April 2022.

However, the negotiations have also seen an end to staff in inner London having higher levels of pay than those elsewhere in the capital, with the creation of one London allowance, paying £13.15 per hour within the M25.

The deal represents an increase from £11.95 in inner London and £11.75 in outer London.

“This represents another significant investment in our colleagues, building on the last two years of investment,” said Tesco UK CEO Matthew Barnes.

“We recognise the amazing work our colleagues do every day in serving our customers and we’re really proud to offer such competitive rates of pay alongside a great range of exclusive colleague benefits.”

Usdaw national officer Daniel Adams 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.

“We welcome the company’s positive response through our negotiations, which have resulted in the largest investment in pay in a single year, with the highest entry rate for store employees of any major supermarket.

“Moreover, at a time when some employers are rowing back from commitments they have made around the real living wage, this deal ensures all rates of pay for store employees continue to be either at or above the real living wage.”