Britain’s second biggest retailer announced today it will pay all its 137,000 non-management store colleagues at least £7.36 from 30 August, up from £7.08 previously.
Ikea also revealed a pay hike for its UK staff earlier this month.
The chancellor George Osborne announced a new compulsory living wage of £7.20 in his Budget last month, rising to £9 by 2020.
The new wage, which replaces the current minimum wage of £6.50, will come into effect in April next year and apply to all workers over 25.
However, Sainsbury’s said all store workers – including those under 25 – will be eligible for the new wage.
In total, the retailer employs 161,000 people across its stores, depots and store support centres.
Chief executive Mike Coupe said: “We’re delighted to announce a four per cent pay increase for the colleagues who work in our stores. We know what a difference they make to our customers each and every day and we’re totally committed to rewarding them well for the great service they provide.”