Tesco has reached an agreement with trade union USDAW that will increase the hourly pay rate for colleagues in stores, from £12.02 to £12.45 from March 30, and again to £12.64 from the end of August.
This two-stage rate increase represents an above-inflation increase of 5.2% and builds on the significant investment Tesco has made in colleague pay and benefits in recent years.
From April 2025, the minimum wage for aged 21+ is £12.21.
This latest £180 million investment in colleague pay will mean hourly-paid colleagues will have seen a pay increase of 32% since April 2022, equivalent to a more than £900 million investment.
Tesco remains one of the few supermarkets to recognise an independent trade union and negotiate pay rates with them for all its hourly-paid colleagues in the UK.
As part of this pay deal for colleagues, Tesco will also be making the following changes:
- The London allowance will increase to £1.21, up 7.1%, taking rates from £13.15 per hour to £14.36 per hour
- To bring Tesco in line with other retailers, it will be removing Sunday premium payments, with eligible colleagues receiving a one-off payment. Bank Holiday premiums will be retained
- Providing Colleague Clubcard discount with no cap for colleagues and their second Clubcard holder, replacing the previous £2,000 allowance
- Increasing the maximum company sick pay entitlement to 20 weeks for eligible colleagues
