Tesco is to increase the hourly pay rate for staff working in its stores from £10.30 to £11.02 after reaching an agreement with USDAW.
The move marks the third pay increase for store staff in the last ten months and represents an investment of more than £230 million. The supermarket said its combined investment in hourly pay over the last year has been a record £450 million.
Due to the rising cost of living, the new rate will come into effect from an earlier date of 2 April 2023.
As part of the deal, Tesco will be increasing the additional skills payment for shift leaders by an extra 40p per hour to £2.26. This will take their hourly rate to £13.28.
In addition, it will be introducing two new London Allowance areas. Staff working in London boroughs will see their allowance increase to 93p per hour to take their basic pay plus location pay to £11.95. For those working in outer London (inside the M25 but excluding London Boroughs), it will rise to 73p per hour to take their basic pay plus location pay to £11.75.
The supermarket will also continue to offer Sunday premiums for team members who joined Tesco before 24 July 2022, but is changing the rate from 25% to £17%.
