Tesco staff get 10% rise

But Aldi and Lidl still better payers

TESCO is handing an inflationbusting pay rise to 235,000 members of staff.

The supermarket giant, Britain’s biggest private sector employer, will increase the base pay for store and warehouse workers by 10.5% over the next two years.

Store staff currently get £7.62 an hour – just 12p above the National Living Wage for over-25-year-olds.

That will go up to £8.02 an hour in November, then £8.18 next July and finally £8.42 in November 2018.

The just over 5% a year rise compares with average wage settlements of 1.7% across the economy and an inflation rate at 2.9%.

Tesco’s UK boss Matt Davis said: “This sees our biggest investment in store pay for a decade.”

However, discount chain Aldi increased its minimum pay rate to £8.53 an hour – and £9.75 in London – in February. And Lidl has already upped its base pay to £8.45 an hour, and £9.75 in London.

Tesco will cut premium pay for staff who work Sundays and bank holidays from time-and-a-half to time-and-a-quarter in July next year.

It claimed 97% of employees would still be better off thanks to the pay rise. Those worse off will be given a lump sum payment.

Pauline Foulkes, national officer at shopworkers’ union Usdaw, said: “Tesco’s recent difficulties are a matter of public record and the staff have played a big part in helping turn the company around.”

Tesco boss Dave Lewis raked in £4.1million last year, including £142,000 to help with moving costs.