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Tesco gives store workers 7% pay increase

Tom Shearsmith
21 February 2023

Tesco is to increase pay for store workers by 7% to a minimum of £11.02 per hour in its third increase over the past 10 months.

The supermarket giant, which employs about 340,000 staff, said the increase in hourly pay from £10.30 an hour will represent an investment of more than £230 million.

It will bring pay investment to a record £450 million over the past year after previous increases.

The retailer said the new minimum pay rate for store workers will take place from April 2 to “reflect the increasing costs our colleagues are currently facing”. The increase will apply to most roles across the store, which includes those working in the F&F (clothing) department.

It comes a week after Asda announced a 10% pay increase for its hourly-paid store workers from July.

Tesco said its latest pay increase, which followed discussions with the Usdaw union, is also on top of investment into free food for staff in store canteens, a salary advance scheme and a discount of up to £1,500 a year off shopping.

As part of the pay deal, Tesco will also increase its “additional skills payment” for shift leaders by an extra 40p to £2.26, bringing their hourly rate to £13.28.

Jason Tarry, Tesco UK & ROI CEO, said: “For the second year in a row, we have made a record single-year investment in base pay for our colleagues. We know that many colleagues have felt the pressure of rising costs this year, and we are absolutely committed to supporting them with competitive base pay and exclusive colleague benefits.

“This agreement recognises the incredible work and dedication our teams show every day in serving our customers.”

Tesco is reportedly modernising its F&F clothing line with the help of creative agency Bartle Bogle Hegarty London. Following a switch from specialist agency Odd, the supermarket giant now plans to unveil the new creative vision with Bartle Bogle Hegarty London later this year. It has been working with the creative agency since autumn 2022, with a relaunch reportedly due in the second half of 2023.

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