Tesco announces a pay increase for store employees

Tesco announced that its employees will receive a raise in pay from PS12.02 up to PS12.45 by 30 March 2025.

This increase is part a deal with the trade union Usdaw. It also includes a second increase in pay to PS12.64 at the end of August, and an increase of 7.1% to PS1.21 for London allowance. Rates will now go from PS13.15 to PS14.36.

This is a 5.2% increase above inflation and represents a PS180 million investment. The hourly-paid employees will have received a pay increase of 32% since April 2022. This is equivalent to an investment of more than PS900million.

Tesco will also eliminate Sunday premium payments. Eligible employees will receive a one-off payout and bank holiday premiums are retained. The maximum entitlement for sick pay for eligible staff has been increased to 20 weeks.

Matthew Barnes, Tesco UK’s chief executive officer, said that “our employees are our most valuable asset and this pay package recognises the brilliant job they do day-in-day-out in serving our customers.”

It also represents another substantial investment in our staff’s pay. Combined with our fantastic benefits package, Tesco continues as a place where you can thrive and have a rewarding career.

Daniel Adams, national office at Usdaw said: “It’s a real accomplishment that Usdaw representatives were able to negotiate a pay agreement that builds on negotiations over the past few years.” It not only ensures a meaningful difference between the Tesco pay rates and the national minimum wage in April but also that the basic pay rate in Tesco in August will be higher than the real living wages outside London and within the M25.

This, as well as the other improvements negotiated, demonstrate the value of an independent trade union relationship with employers.

Tesco provides a virtual doctor service, 26-weeks of fully paid maternity leave and six-weeks of fully paid paternity, as well as free food at the store canteens. It also offers share saving schemes, employee assistance programmes, a retirement plan that matches up to 7.5% and a discount up to 15% on purchases.

Benefits, rewards and compensation opportunities

Browse Comp and Benefits Jobs