The new rate will come into effect on 28 April 2024 and represents a 9.1% rise in base pay at a time when the headline inflation rate sits at 4.0%. As a result of this deal and previous negotiated settlements, base pay will have increased by nearly 26% in less than two years.
 
The new pay rates apply to staff of all ages and exceeds the national living wage, which currently stands at £10.42 an hour and is increasing to £11.44 an hour from April for those aged 23 and over. It also takes staff above the Living Wage Foundation rate outside London of £12.00 and ensures all staff in stores within the M25 are on their rate of £13.15.
 
The pay deal also includes:

• A 50% increase in paid paternity leave to a sector-leading six weeks at full pay
• An increase in maximum sick pay entitlement up to 18 weeks
• For those colleagues receiving Sunday premiums, this will change to 10% which not only maintains the value of Sunday working but also ensures Tesco remains one of the few retailers to still pay a Sunday premium 

Daniel Adams, Usdaw National Officer said: “This deal not only delivers an inflation-busting increase for Tesco employees it also demonstrates the value of progressive employers engaging constructively with trade unions at a time when the cost of living pressures continue to be keenly felt by our members. We welcome the company’s positive response through our negotiations which have resulted in the largest investment in pay in a single year with the highest entry rate for store employees of any major supermarket. Moreover, at a time when some employers are rowing back from commitments they have made around the real Living Wage, this deal ensures all rates of pay for store employees continue to be either at or above the real Living Wage.”
 
Matthew Barnes, Tesco UK CEO said: “This represents another significant investment in our colleagues, building on the last two years of investments. We recognise the amazing work our colleagues do every day in serving our customers and we’re really proud to offer such competitive rates of pay alongside a great range of exclusive colleague benefits.”
 
Notes for editors:
 
Usdaw (Union of Shop, Distributive and Allied Workers) is one of the fastest growing unions in the TUC and the UK's fifth biggest trade union with around 360,000 members. Most Usdaw members work in the retail sector, but the union also has many members in transport, distribution, food manufacturing, chemical industry and other trades www.usdaw.org.uk
 
For Usdaw press releases visit: http://www.usdaw.org.uk/news and you can follow us on Twitter @UsdawUnion