Tesco Invests in Colleagues with New Pay Deal Taking its Hourly Rate to £9.55

Tesco has today announced a new pay deal for hourly-paid Store and Customer Fulfilment Centre (CFC) colleagues which will see their hourly rates increase 2.7% from £9.30 to £9.55 from 5 September 2021.

The one-year pay deal has been developed in partnership our elected Usdaw colleague representatives and Usdaw and is above inflation rates. It is focused on what colleagues have said is most important to them – a higher basic hourly rate. Since July 2014 our hourly rate has increased by 29.2%

Tesco is also increasing Night Premium Payments for eligible colleagues from the current rate of £2.21 to £2.30 from 5 September 2021 – an increase of 4.1%

It is important that we reward our colleagues for all they do, particularly after the last year when colleagues worked harder than ever to serve customers safely through the pandemic. We recognised their heroic efforts with separate, additional bonus payments through the year, and today, we are pleased to share a further investment in base salary.

Jason Tarry, Tesco UK CEO, 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. Together with our other colleague benefits, it makes our total reward package more competitive than ever before.”

We are committed to working in partnership with our unions, and will continue to review and invest in our colleagues’ reward to ensure we remain an employer of choice.

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