Sainsbury’s has announced it will invest £100 million to boost its store employees’ hourly pay from £9.50 to £10 an hour.

Those working in inner London will see their hourly rate increase from £10.10 to £11.05, while those in outer London will see their pay rise from £9.75 to £10.50.

This follows an announcement from Aldi last year, which said from next month all of the budget supermarket’s store workers will be paid a minimum of £10.10 an hour nationally, while those inside the M25 will be paid £11.55.

Sainsbury’s is also increasing additional payment rates for drivers. Groceries Online drivers will now get £11.50 per hour, with a basic rate of £10 per hour plus an extra £1.50 per hour.

Argos Fast Track Delivery drivers will receive £11 per hour based on a base rate of £10 per hour plus an extra £1, up from 75p. The supermarket said that while demand for online deliveries remains high, the boost to pay will help it recruit drivers.

“To kick off the New Year, I am pleased that one of the first things we are doing is investing in our colleagues and lifting our basic hourly rate of pay to £10,” said Simon Roberts, chief executive, Sainsburys “We are making this significant investment to show our colleagues how much we value the brilliant job they do for our customers every day. It also reflects the significant progress we are making against our plan and to save money we can invest in lower prices, offer fantastic colleague service and make shopping convenient for customers.

“We have also listened to our colleagues and are enhancing our colleague discount scheme to help them plan their grocery spend and manage their shopping budgets better, which could save colleagues hundreds of pounds a year.”

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