Tesco increases hourly pay by the most it has ever increased, to over £11 per hour.

February 21, 2023

Tesco increases hourly pay by the most it has ever increased, to over £11 per hour.


Tesco and USDAW have achieved a deal that will result in a 72p raise in the hourly wage rate for coworkers working in stores, from £10.30 to £11.02. This investment of more than £230 million is the third wage raise for these coworkers in the previous 10 months. A record £450 million has been invested in hourly pay over the past year.


This higher rate, which represents a 7% increase in base pay, will go into effect sooner than scheduled on April 2, 2023, to reflect the rising costs our coworkers are presently confronting. This is in addition to the financial commitments we have made to assist our coworkers from April 2022. As well as investing in our hourly rate of pay, we continue to provide colleagues with free food in store canteens, a salary advance scheme and a discount of up to £1,500 a year off their shopping. Also, coworkers gain access to a competitive benefit package that includes share plans, a matching contribution option for the Tesco Retirement Savings Plan of up to 7.5%, an employee assistance programme, and much more.

We will also be implementing the following modifications as part of this wage agreement for coworkers:


Shift Leaders’ hourly rate will rise to £13.28 by adding an additional 40p per hour to their additional skills payment, or $2.26.

Adding two new regions for the London Allowance. Colleagues who work in London Boroughs will see a rise in their Allowance to 93p per hour, bringing their total compensation to £11.95. Colleagues who work in Outer London (inside the M25 but outside of London Boroughs) will see an increase in their Allowance to 73p per hour, bringing their total pay—basic salary plus location pay—to £11.75.

retaining the value of Sunday work for individuals who are eligible by continuing to offer Sunday premiums to colleagues who joined Tesco before 24 July 2022 but lowering the rate from 25% to 17%.

Tesco UK & ROI CEO Jason Tarry stated: “We have invested a record amount in base pay for our employees in a single year for the second year in a row. The burden of growing costs has undoubtedly affected many of our coworkers this year, and we are steadfastly committed to providing them with competitive base pay and special coworker benefits. This agreement honours the extraordinary effort and commitment our teams make to supporting our customers every day.


This agreement, which comes after earlier agreements with the Union on additional investment outside of the typical annual negotiations and moving the 2023 pay negotiations forward, according to USDAW National Officer Daniel Adams, “represents a significant step forward for pay within Tesco retail. It ensures that the company keeps up with the enormous demands our members experience while also representing the third pay raise in the past 10 months. Additionally, it exemplifies the importance of employers cooperating constructively with labour unions during this extraordinarily trying time.