Tesco Ireland has today announced a €40 million investment in pay rates and enhancement to benefits for its staff.
The retailer has highlighted an overall 10% pay award that covers 2021, 2022 and 2023.
Tesco Ireland noted that it will apply a 6% pay award effective from 1 April 2022 (2.5% of which will be backdated to April 2021).
A further 4% increase will be awarded from 1 April 2023.
Discretionary Colleague Bonus
Today’s pay award is in addition to two years of discretionary colleague bonus payments of 2.5% for 2021 and 2% for 2022.
Since Covid-19 began, Tesco highlighted that it has paid a further €10 million in pandemic bonus payments to its staff.
It has also continued to support its staff with enhanced discounts and life assurance, throughout the pandemic.
Natasha Adams, CEO of Tesco Ireland, said the pay award was a positive day for colleagues.
“I am pleased to be able to make this announcement for our colleagues at a challenging time for families with rising living costs," she said.
"Solidifying this pay award will help to provide certainty of pay and benefits for our colleagues, secure our business and jobs in the years ahead and continue to make Tesco a great place to work."
The pay award follows the retailers recent investment in benefits including paid maternity, paternity and adoptive leave, and the introduction of a new industry leading pension plan.
Since the enhanced benefits were introduced in March 2022, 70 colleagues are currently benefitting from paid maternity, paternity, and adoptive leave, and 1,000 more colleagues are now saving for their retirement who were not previously, it added.
Largest Private-Sector Employer
Tesco noted that it is the largest private-sector employer in Ireland, and offers its staff highly competitive market rates and industry leading Total Reward and Benefits.
Since July 2021, Tesco has engaged in discussions on retail pay and benefits with trade unions and colleague representatives including local discussions, attendance at the Workplace Relations Commission (WRC) and the Labour Court.