Co-op has announced it will be raising pay for in-store employees following a ballot of Usdaw union members.

Hourly rates will increase to at least £12.60 per hour during 2025, or around five per cent, which Co-op said is in line with its commitment to the Real Living Wage.

The company said the pay rise represents an increase of almost 27 per cent since 2022.

The pay increase will rise in two stages, with the first stage from 1 April where wages will rise from £12.00 per hour to £12.30. From 1 August, this will rise to £12.60.

The Co-op claims that when paid breaks are taken into account, this equates to £13.46 per hour for a full-time employee.

Team leaders will see a pay increase from £13.32 to £13.65 on 1 April, and a further increase to £13.99 from 1 August.

For employees based in London, the hourly rate of pay will increase from £13.15 to £13.85 from 1 August 2025, while team leaders in London receiving an increase from £14.47 to £15.24 from 1 August.

Along with additional benefits such as additional parental leave and staff discounts, Co-op claims that the pay rise could mean as much as £12,000 extra per year for a full-time employee.

“Our store colleagues are at the very heart of the business and we are pleased to be able to provide a reward package that is competitive, above inflation and impactful,” said Kate McCrae, Co-op operations director. “This deal reaffirms our ongoing commitment to the Real Living Wage, and ensures Co-op is among the highest food retailers in terms of pay.”

The move follows announcements earlier this week from Marks & Spencer and B&Q, who said that they would increase pay for their employees above the National Living Wage.

Last month, supermarket chain Aldi shared that it would give in-store colleagues a pay rise, claiming that it would pay the highest rates in the sector.

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