UK retailer Marks & Spencer (M&S) has allocated £95m ($121m) to increase its retail pay offer, despite facing additional financial pressures due to recent government measures.
This is the largest allocation of funds to retail pay since Stuart Machin assumed the role of CEO in 2022 and the third such raise under his leadership.
Effective from 1 April 2025, remuneration for around 50,000 UK customer assistants will rise from £12 to £12.60 per hour.
The adjustment means an enhancement of 5% compared to the previous year and a cumulative 26% rise since 2022 - twice the inflation rate during that timeframe, which is calculated at 13.5%.
It translates to a monthly increase of £98 for a full-time employee situated outside London.
London hourly earnings will increase from £13.15 to £13.85 - a 5.3% uplift from the preceding year.
UK team support managers' hourly wages will rise from £13.05 to £13.65, and their London counterparts' wages from £14.20 to £14.90.
M&S has allocated £89m towards retail pay enhancements in the UK and an additional £5m annually to boost maternity, paternity and adoption benefits in 2024.
With the 2025 pledge, the total investment in retail remuneration packages since 2022 surpasses £285m. This ensures that all UK store colleagues receive at least the Real Living Wage as their base salary.
When combined with M&S's extensive benefits suite, which includes a 20% staff discount, the overall value could reach up to £15.40 per hour.
The comprehensive benefits package also includes a competitive pension contribution that can amount up to 12%, eligibility for participation in the company's Sharesave scheme, fully paid maternity or adoption leave spanning 26 weeks and six weeks of fully paid paternity leave.
Stuart Machin stated: “Following the government’s recent increases in tax and national insurance contributions, it’s no secret that M&S and indeed the entire retail sector has some significant cost headwinds to face into in the new financial year.
“However, I have always believed that we should not allow these headwinds to impact our hourly paid colleagues, which is why today, for the third year in a row, we are making a record investment in our retail pay offer. This means we have now invested almost £300m in our pay over the past three years, well above the rate of inflation, in addition to our market leading discount and pension offer for colleagues.”
In February 2025, M&S announced three senior appointments to its global leadership team as it seeks to reset its international business and bolster its future growth plans.
