Tesco UK announces pay hike for store staff
Tesco in the UK has announced a new pay deal for its store staff, that will see hourly rates increase by 10.5% over the next two years. The new rate of pay will be £8.42 per hour by November 2018.
26 June 2017
Tesco’s new pay deal for UK staff will see hourly wages increase to £8.42 in the next two years. When bonus and pensions are factored in, the new average wage for Tesco staff will be £9.52.
Meanwhile, starting from October, the retail giant will offer a “significantly imroved” maternity package, including an additional 14 weeks’ half-pay for all staff, the eligibility period of which is set to reduce from two years to one.
The move by Tesco, the UK’s largest private sector employer, is thought to be pre-empting the imminent raising of the UK minimum wage.
Matt Davies, CEO of Tesco UK, said the wage hike is the compnay’s biggest investment in pay for a decade. “This is a sustainable pay deal that rewards colleagues for everything they do,” Davies said, “while allowing us to attract new talent.
“We also want to do all we can to help working parents,” Davies added. “That’s why we are proud to offer a much improved maternity package to our colleagues.”
Tesco Ireland is, like the UK, one of this country’s largest employers, with more than 13,000 employees across the country. A spokesperson for Tesco tells ShelfLife that the company’s average rate of pay this year will be €14.31 including benefits. “We are also the only food retailer to give all colleagues contracts guaranteeing their minimum weekly hours,” the spokesperson said, “with more than 50% of our colleagues working 30 hours of more every week.”
The national minimum wage in Ireland is currently €9.25 per hour.