\n<\/p>\n
Tesco will lift pay for its store staff by 5.2% but will scrap the extra pay for working on Sunday.<\/p>\n
The UK’s biggest supermarket chain said the hourly rate will go up by 43p to \u00a312.45 from 30 March after reaching a deal with unions.<\/p>\n
It will raise pay again to \u00a312.64 from the end of August – a little above the UK national minimum wage which is set to rise to \u00a312.21 per hour from April.<\/p>\n
However, Tesco will also drop the current 10% pay bonus for Sunday shifts for all staff, which it had already stopped providing for new starters.<\/p>\n<\/div>\n
Tesco’s UK chief executive says the \u00a3180m spent on funding the pay increases is a “significant investment”.<\/p>\n
The USDAW union said workers in London will see their pay rate increase to \u00a313.66 per hour, and then \u00a313.85.<\/p>\n
The above-inflation pay rise comes after discussions with the trade union.<\/p>\n
USDAW’s Daniel Adams said the raise “ensures a meaningful gap between the Tesco rates of pay and the National Living Wage in April”.<\/p>\n
Tesco added that those affected by the scrapping of the Sunday pay bonus will receive a one-off payment, although it did not make clear how much the payment would be nor how it would be calculated.<\/p>\n
The move comes as many big supermarkets raise pay to attract more staff in a tight labour market.<\/p>\n
In January, Sainsbury’s said it will raise hourly pay by 5%,<\/a> also in two phases, but said it was cautious about recruiting new staff in 2025 due to rising costs “to help manage a particularly tough cost inflation environment”.<\/p>\n The German-owned discount chain Lidl will also raise pay, it announced in February<\/a>, from \u00a312.40 per hour to \u00a312.75.<\/p>\n Chancellor Rachel Reeves announced in the October Budget that in April, along with the national minimum wage, employer National Insurance contributions will also rise. <\/p>\n