Of the big four supermarkets – Morrisons, Tesco, Sainsbury’s, and Asda – Tesco currently pays its staff the lowest. However, from September, this is set to change.
Tesco has consulted with union reps from Usdaw to come up with the pay packet.
In its announcement this week, Tesco said its staff’s hourly wages have risen by 29.2 percent since July 2014.
The supermarket is also increasing night premium payments for eligible colleagues from £2.21 to £2.30.
Of the big four supermarkets, Tesco currently pays its staff the lowest hourly rate.
Morrisons is the highest paying, giving its workers a minimum of £10 per hour.
Aldi pays higher than three of the big four, with a minimum wage of £9.55 an hour.
In September, Tesco staff will be paid the same amount as Aldi workers.
By the end of the year, Asda will be the lowest paying of the top four, as well as Aldi and Lidl, giving its staff a minimum wage of £9.36 an hour.
Iceland, however, pays its staff less than Asda does, with an hourly rate of £8.91.
Jason Tarry, Tesco UK’s CEO, commented on the move.
He said: “We’re delighted we have been able to reach this agreement giving our colleagues a well-deserved pay increase.
“Over the last year our colleagues have gone above and beyond to continue to serve our customers throughout the pandemic,” Mr Tarry added.
“Together with our other colleague benefits, it makes our total reward package more competitive than ever before.”
This news comes just days after Tesco shop floor workers – most of them women – won an equal pay case against the supermarket in the European Court of Justice.
The Court heard that Tesco was paying shop floor staff £3 less than warehouse employees, when their work is of the same value.
Around 6,000 current and former workers argued that Tesco should be seen as a single entity in terms of employment conditions, in line with EU law.
Europe’s top court agreed, meaning that as many as 25,000 mostly female employees could be owed more than £2.5billion in compensation after being underpaid for at least seven years.