Tesco store staff will be receiving a pay rise of up to 3.1% which will take the hourly rate of pay for established staff to £7.62 per hour. This will mean established staff will receive more than the Government’s new National Living Wage of £7.20 per hour.

Staff at Tesco will also continue to receive benefits such as a pension, colleague discount and a 5% turnaround bonus. The pay increases will come into effect on 3rd July and will apply to staff of all ages.

Tesco has also introduced what it described as a “simpler and fairer approach” to premium payments. All staff will receive time and a half for Sunday and bank holiday shifts from July.
Staff members who are negatively impacted by the changes will be supported with a lump sum payment worth 18 months of the difference in pay.

Tesco UK and Republic of Ireland chief executive, Matt Davies said: “We’ve spent a lot of time working with Usdaw and colleague representatives to understand what’s important to colleagues. Together, we’ve agreed one of the highest pay and benefits packages in retail for store colleagues, and introduced a simpler and fairer pay structure, including one approach to premium payments.

“As well as an increase in pay which puts our hourly rate well above the Government’s National Living Wage, we remain absolutely committed to rewarding our colleagues with a pay and benefits package they really value, including a pension, colleague discount and 5% turnaround bonus.”