Tesco has reached an agreement with trade union USDAW that will increase the hourly pay rate for colleagues in stores, from £12.02 to £12.45 from 30 March 2025, and again to £12.64 from the end of August.
This two-stage rate increase represents an above-inflation increase of 5.2% and builds on the significant investment Tesco has made in colleague pay and benefits in recent years.
This latest £180m investment in colleague pay will mean hourly-paid colleagues will have seen a pay increase of 32% since April 2022, equivalent to a more than £900m investment.
Tesco remains one of the few supermarkets to recognise an independent trade union and negotiate pay rates with them for all its hourly-paid colleagues in the UK.
On top of its pay deal, Tesco continues to have a market-leading package of colleague benefits, including a Virtual GP service for colleagues, the right to request flexible working from day one, and enhanced family leave policies, including 26 weeks fully paid maternity and six weeks fully paid paternity.
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