Sainsbury’s is set to become the latest UK supermarket to pay shop workers at least £10 an hour.
It will increase its basic rate from £9.50 to £10 an hour for staff across its supermarkets and Argos stores from 6 March.
Simon Roberts, Sainsbury’s chief executive officer, said that the increase in pay reflected progress against the company’s savings plan.
This follows similar announcements by Morrisons and Lidl last year.
Sainsbury’s will also increase its minimum hourly rate from £9.75 to £10.50 for workers in outer London and from £10.10 to £11.05 in inner London.
By comparison, the UK’s minimum wage for workers over 23 – the National Living Wage – is set to rise from its current level of £8.91 an hour to £9.50 from April.
Meanwhile, the real living wage, paid voluntarily by almost 9,000 employers throughout the country, has gone up from £9.50 to £9.90 an hour.
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Sainsbury’s will increase the rates for approximately 150,000 employees throughout its company, which includes shop workers as well as lorry drivers.
The supermarket chain said it was investing £100m in total in improving pay and rewards for its frontline staff.
Roberts stated that the significant investment was made to demonstrate how highly we appreciate our coworkers’ tireless work for customers each day.
It will increase drivers’ pay in an ongoing struggle for recruitment, which was exacerbated recently by Brexit and the coronavirus pandemic.
From April 1, minimum wage rises
- National Living Wage for over-23s: From £8.91 to £9.50 an hour
- National Minimum Wage for those aged 21-22: From £8.36 to £9.18
- National Minimum Wage for 18 to 20-year-olds: From £6.56 to £6.83
- National Minimum Wage for under-18s: From £4.62 to £4.81
- The Apprentice Rate: From £4.30 to £4.81
Groceries delivery drivers will now get £11.50 per hour, while 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.
Sainsbury’s stated that “While online delivery demand remains high,” the retailers will benefit from the increased pay.
Employees will receive 10% off their purchase from Argos, Habitat and Sainsbury’s. This discount will increase to 15% for each day thereafter.
Despite the increase, the higher rate will still fall shy of the £10.10 per hour Aldi and Lidl have offered to pay staff from February and March respectively.
Lidl has set out new rates where more experienced workers will earn up to £11.40 an hour, while Aldi will pay £11.55 an hour to employees working within the M25.
The latest available data suggests that Tesco currently pay £9.55 an hour, while Waitrose and the Co-op pay £9.50 and Asda pays £9.18.
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