Supermarket giant Tesco has announced it will hike hourly wages by 5.8 per cent from £9.55 to £10.10, as Brits face a cost of living crunch.
New hourly rates for store and warehouse staff will be effective from 24 July, the grocer revealed on Thursday afternoon.
The supermarket also confirmed workers in London would be paid £10.78 an hour, a premium of 68p.
After successful talks with the Union of Shop, Distributive and Allied Workers (Usdaw), the supermarket dubbed this the biggest single-year investment in pay in at least a decade, with an investment worth £200m.
Tesco revealed it would also be increasing the hourly rate for customer delivery drivers and click and collect delivery assistants to £11 from this summer.
Due to present economic uncertainty, the supermarket said the deal would just be for one-year and pay would be reviewed again with Usdaw in 2023.
Jason Tarry, Tesco UK & ROI CEO, said the change “recognises the vital role our colleagues play in our business now and in the future, giving them a well-deserved pay rise, more access to extra hours and setting out a long-term commitment and investment in their careers at Tesco.”
He added: “These investments in our colleagues are central to making Tesco what we truly want it to be: a great place to work for all. A place that attracts and retains the best talent in the industry.”
Pay at Tesco, which continues to have the largest market share out of UK grocers, now matches the non-London rate of discount rival Aldi.
Aldi hiked pay for store assistants to £10.10 per hour nationally and £11.55 for London workers in February, in an investment worth £34m.
Daniel Adams, Usdaw national officer, said the union was pleased to have secured a pay deal that “delivers the highest hourly rate of pay in the sector.”