The UK’s biggest retailer is to raise store worker pay by 5.2% over the next six months but strip away a 10% premium for working on a Sunday.
Tesco said it was to stagger the increase, with the full amount taking effect from the end of August after an initial rise at the end of this month, following talks with the Usdaw union.
It marks a £180m investment for Tesco and means its staff will remain comfortably over the new national living wage rate due to take effect on 1 April.
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The first rise also coincides with the hike in employer National Insurance contributions announced in last October’s budget.
It’s set to add £250m a year to Tesco’s costs.
The company employs more than 300,000 people in the UK. It revealed 400 job losses in January as part of efforts to “simplify” the business ahead of the tax change.
The new pay deal, while above the rate of inflation, will remove a 10% bonus enjoyed by staff when they work a shift on a Sunday.
Tesco, which had already removed the perk for new starters, said those affected by the loss of pay would receive a one-off payment to cover the next 18 months as it phased out the premium.
Tesco UK boss Matthew Barnes said: “Our colleagues are our greatest asset, and this pay deal recognises the brilliant work they put in day-in, day-out to serve our customers.
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