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Tesco pay deal: Usdaw secures a 7% increase in hourly pay taking the basic rate to over £11 an hour

Date: 20 February 2023 Retail trade union Usdaw has negotiated a pay deal with Tesco that will significantly increase the hourly pay rate for staff in stores and fulfilment centres by 72p to £11.02 per hour. Around 220,000 colleagues across the UK will benefit from this increase, which represents another record investment in hourly pay.
The new rate will come into effect on 2 April 2023 and represents a 7% rise in base pay. This is on top of the increases made since July 2022, to support staff facing increased costs. As a result of this deal, over 10 months, base pay will have increased by nearly 15.5%.

The new pay rates apply to staff of all ages and exceeds the national living wage, which currently stands at £9.50 an hour and is increasing to £10.42 an hour from April for those aged 23 and over. It also takes staff above the Living Wage Foundation rate outside London of £10.90 and ensures all staff in stores in London boroughs are on their rate of £11.95.

The pay deal also includes:
  • Shift Leaders receiving an extra 40p per hour taking their skill payment to £2.26 and their hourly rate to £13.28.
  • Introducing two newly created London Allowance areas – staff working in London boroughs will now be paid an extra 93p per hour taking their basic pay plus location pay to £11.95. Staff working in outer London (inside the M25 but excluding London boroughs) will now be paid an extra 73p per hour taking their basic pay plus location pay to £11.75.
  • For those colleagues receiving Sunday premiums, this will change from 25% to 17% (which protects the existing monetary amount for Sunday working).
Daniel Adams, Usdaw National Officer said: “This deal, which follows earlier agreements with Usdaw on additional investment outside of the normal annual negotiations and bringing the 2023 pay negotiations forward, represents a significant step forward for pay within Tesco retail. It represents a third increase in pay in 10 months and ensures that the business continues to respond positively to the significant pressures our members face. Furthermore, it demonstrates the value of employers engaging constructively with trade unions at this incredibly difficult time.”

Jason Tarry, Tesco UK & ROI CEO 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. This agreement recognises the incredible work and dedication our teams show every day in serving our customers.”

Notes for editors:
Usdaw (Union of Shop, Distributive and Allied Workers) is 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.
For Usdaw press releases visit: http://www.usdaw.org.uk/news and you can follow us on Twitter @UsdawUnion

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The official website of the Union of Shop, Distributive and Allied Workers