Supermarket chain Tesco has finalised an accord with trade union USDAW to uplift the hourly wages of in-store colleagues.
From 30 March 2025, pay will rise from £12.02 to £12.45, followed by a further hike to £12.64 at the end of August.
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This two-phased salary enhancement equates to an inflation-exceeding rise of 5.2%.
The latest infusion of £180m into employee wages signifies 32% salary growth for hourly-paid staff since April 2022, in an investment exceeding £900m.
Tesco is also set to augment the London living allowance by 7.1% to £1.21, thereby elevating hourly rates from £13.15 to £14.36.
While the company plans to discontinue Sunday premium payments, it will compensate affected employees with a singular payment and maintain premiums for Bank Holidays.
Tesco will also offer unrestricted Colleague Clubcard discounts, superseding the former £2,000 limit, and extend maximum company sick pay entitlement to 20 weeks for qualifying staff members.
Beyond these enhancements, Tesco offers employees immediate access to flexible working arrangements, generous maternity and paternity leave policies, and health benefits such as a virtual GP service.
Employees also receive 15% discount on purchases with their Colleague Clubcard, complimentary meals in store canteens and an option for pay advances
Tesco’s commitment to rewarding its workforce extends to long-term financial incentives such as share save schemes and the Tesco Retirement Savings Plan that matches contributions up to 7.5%.
Tesco UK CEO Matthew Barnes stated: “Our colleagues are our greatest asset, and this pay deal recognises the brilliant work they put in day-in, day-out to serve our customers. It also represents another significant investment in our colleague pay, which combined with our fantastic package of benefits, means Tesco continues to be a place to get on and thrive in a fulfilling and rewarding career.”
In January 2025, Tesco announced plans to cut 400 jobs in a move to streamline its operations.
