Tesco announces pay rise amid cost-of-living crisis

Tesco announces pay rise amid cost-of-living crisis

Supermarket giant Tesco has announced a pay rise for its staff, as the cost-of-living crisis begins to bite.

The retailer, which is the UK’s biggest private employer, has announced that staff wages will rise by 55p up from £9.55 to £10.10 an hour from 24 July.

This applies to staff in stores and fulfilment centres, while delivery drivers and click and collect assistants will see their pay increase to £11 per hour.

The announcement sees the supermarket move in line with Lidl and Aldi, which became the UK’s highest paying supermarkets earlier this year.

The rise comes as millions of people across the UK are facing a cost-of-living crisis amid surging food, fuel and energy prices.

Wages are not keeping up with prices, with inflation rising at its fastest rate in three decades.

Many large employers are under pressure to increase wages for staff, particularly among the lowest paid employees, to ease the strain of the current economic landscape.

With staff shortages rife across the economy, big employers also need be competitive on pay in order to attract the right staff in an increasingly fierce job market.

Other perks are also needed to ensure sure firms can retain their staff.

For example, alongside the pay rise, Tesco staff will get an increase to their Clubcard discount allowance by £500, taking the annual total allowance to £1,500 from 1 April.

Staff will also have access to more contracted hours to boost their pay.

Speaking on the announcement, Jason Tarry, Tesco UK & ROI CEO said: “We are delighted to have reached an agreement with USDAW that 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.

“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.”

The firm employs around 300,000 people and it is reported that raising the hourly rate will increase the company’s wage bill to £200 million.

It comes as the National Living Wage, for workers aged over 23, increased from £8.91 to £9.50 per hour from the beginning of this month.

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