Tesco has announced a new pay deal for hourly-paid staff working in its stores and customer fulfilment centres.

Staff will have their hourly rates increased by 2.7% from £9.30 to £9.55 from 5 September 2021.

Developed in partnership with Tesco’s elected Usdaw colleague representatives and Usdaw, the deal will also see night premium payments rise for eligible staff from the current rate of £2.21 to £2.30.

Jason Tarry, Tesco UK chief executive, said: “We’re delighted we have been able to reach this agreement giving our colleagues a well-deserved pay increase. Over the last year our colleagues have gone above and beyond to continue to serve our customers throughout the pandemic. Together with our other colleague benefits, it makes our total reward package more competitive than ever before.”