Tesco staff in line for pay rise

Tesco said last night it will hand around 250,000 UK staff a 10.5% wage rise, marking its biggest investment in store pay for 10 years.

The UK’s biggest grocer will boost the hourly pay rate for 250,000 workers from £7.62 an hour to £8.42 by November 2018.

However, the firm will also cut pay for staff working Sunday and bank holidays, with wages shifting from time and a half to time and a quarter from July 2018.

Tesco UK chief executive Matt Davies said: “This reward package sees our biggest investment

“Biggest investment in store pay for a decade”

in store pay for a decade, and gives colleagues a sustainable pay deal that rewards them for everything they do, while allowing us to also attract new talent.

“We also want to do all we can to help working parents – and that’s why we are proud to offer a much improved maternity package.”

The pay boost will be rolled out to workers in three stages, rising from £7.62 to £8.02 in November 2017, before climbing from £8.02 to £8.18 in July 2018, and finally stepping up from £8.18 to £8.42 in November 2018.

Staff will earn an equivalent hourly rate of £9.52, once benefits are taken into account.

Tesco said the pay rise, which was agreed after talks with the union Usdaw, would leave 97% of staff better off.