Tesco, Britain's biggest retailer, said on Monday it will implement a 10.45% pay rise for store and distribution centre staff by October 2020, though they will lose an annual bonus.
The group, which with a staff of 300,000 is also Britain's largest private sector employer, said hourly-paid store and Customer Fulfilment Centre (CFC) staff will see their hourly rate increase to £9.30 ($11.78).
Tesco said the increase will be implemented in two stages - from 1 September this year pay will increase by 6.9% to £9.00 then on 4 October 2020 pay will increase again by 3.3% to £9.30.
The group said it had agreed with union Usdaw that it will replace a staff bonus - the Colleague Bonus Plan - permanently with the higher hourly rate.
News by Reuters, edited by Donna Ahern Checkout. Click subscribe to sign up for the Checkout print edition.