Tesco will increase hourly pay for staff working in stores by 72p, which is the third pay increase in the past 10 months and an investment of over £230 million.

The pay rise, which is worth around seven per cent, has been made in agreement with the Union of Shop, Distributive and Allied Workers (USDAW) and will increase pay from £10.30 to £11.02 per hour.

The supermarket chain said that shift leaders will see the additional skills payment rise by 40 per hour to £2.26, which takes their hourly pay to £13.28.

The pay rise will come into effect on 2 April, with Tesco saying that it would help employees with rising living costs.

Tesco is also introducing pay weighting for employees working in London. Staff working in London boroughs will see pay increase 93p to £11.95 per hour while those working in outer London will see pay rise by 73p to £11.75 per hour.

Commenting on the news Jason Tarry, Tesco UK & ROI chief executive said: “For the second year in a row, we have made a record single-year investment in base pay for our colleagues.

“We know that many colleagues have felt the pressure of rising costs this year, and we are absolutely committed to supporting them with competitive base pay and exclusive colleague benefits,” he said.

The pay increase from Tesco is in line with other supermarkets.

Aldi stated that from September 2022 employees will be paid a minimum of £10.50 an hour nationally and £11.95 for those working within the M25; an increase of 40p an hour.

Employees in Aldi’s warehouses saw pay increase to a minimum rate of £13.48 per hour, a rise from £11.48 in January 2022.

The company says it is the only supermarket to offer paid breaks in shifts, which it claims is worth more than £830 in pay.

Earlier this year Sainsbury’s increased the pay of its employees from £10.25 to £11.00 per hour outside London and from £11.30 to £11.05 per hour in the capital.

Asda was named the “worst paying” supermarket out of the big four by the GMB Union, with basic pay of around £10.10 per hour.

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