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Tesco UK To Raise Store Worker Pay By 9.1%

By Reuters
Tesco UK To Raise Store Worker Pay By 9.1%

Tesco UK will raise store workers’ hourly pay by 9.1%, in a move that reflects the UK’s increasing government-mandated minimum wage.

Britain’s leading supermarket is the latest to raise wages, increasing base pay from £11.02 per hour to £12.02 from April.

This is in line with government increases, which will see the minimum wage go up from £10.42 to £11.44 in April.

In London, Tesco workers’ base pay will increase to £13.15 per hour, in line with the higher cost of living in London.

The group noted that the change would cost the company £300 million.


The Bank of England is watching wage increases carefully, as it assesses the direction of interest rates.

The bank fears that rapid wage increases could add more inflationary pressure to the economy.

Worker wages in the UK have only recently begun outpacing inflation.

Though inflation held steady at 4% in January, it is still double the bank’s target of 2%.

The UK’s second-biggest supermarket group, Sainsbury’s, announced a 9% pay rise for workers in January. The hourly base rate will rise to £12.


Asda, the next-largest group, last week announced that it would be increasing its base rate of hourly pay to £12.04.

However, this change will not take effect until July, with an interim wage being introduced in April, to coincide with the minimum wage increasing.

Other retailers, such as Marks & Spencer, Aldi and Lidl, have also announced pay rises for this year.

Read More: Marks & Spencer UK Announces Up To 10.1% Wage Increase For Staff

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