Tesco has announced a major pay increase for its store colleagues, following an agreement with the trade union USDAW. The new pay rates will take effect in two stages in 2025.
New Pay Rates for Tesco Staff
- From March 30, 2025, hourly pay will rise from £12.02 to £12.45.
- From August 2025, pay will increase again to £12.64 per hour.
- This represents a 5.2% pay rise, above the rate of inflation.
- Since April 2022, Tesco has increased wages by 32%, investing over £900m in pay improvements.
London Allowance and Benefits Update
- Workers in London will see their allowance increase by 7.1%, reaching £1.21 per hour.
- This means London-based store colleagues will earn between £13.15 and £14.36 per hour.
- Tesco will remove Sunday premium payments but offer a one-off compensation payment.
- Bank Holiday premiums will remain unchanged.
More Perks for Tesco Workers
- Unlimited Colleague Clubcard discount (previously capped at £2,000 per year).
- Sick pay entitlement increased to 20 weeks for eligible employees.
- Flexible working rights from day one.
- Enhanced family leave, including 26 weeks fully paid maternity leave and six weeks fully paid paternity leave.
Tesco also offers free food in store canteens, a pay advance scheme, and a retirement savings plan matching up to 7.5%. With this new investment, Tesco aims to remain one of the best-paying supermarkets in the UK.
