(qlmbusinessnews.com . Wed 19th Mar, 2025) London, UK —
“Tesco Boosts Staff Pay to £12.45, But Scraps Sunday Bonus: Full Details”
Tesco has announced a 5.2% wage increase for its store staff, effective from 30 March, raising the hourly rate by 43p to £12.45. This move, agreed with trade unions, will be implemented in two phases, with further increases set to boost the rate to £12.64 by the end of August – slightly above the new national minimum wage of £12.21 per hour coming into force in April.
However, in a cost-saving measure, Tesco will also scrap its 10% pay bonus for Sunday shifts, a benefit already discontinued for new starters. The supermarket giant has stated that those affected by the removal of the Sunday bonus will receive a one-off payment, though details of this compensation have not been disclosed.
Tesco’s UK Chief Executive has described the £180m investment in wage increases as “significant,” emphasising that the raise ensures pay is 5.2% above inflation, thus providing a meaningful gap compared to the National Living Wage. The USDAW union has noted that workers in London will see even higher increases, with hourly rates rising to £13.66 initially and then £13.85.
This decision comes as major supermarket chains, including Sainsbury’s and Lidl, are also raising wages in a tight labour market. Sainsbury’s has announced a 5% increase in two phases, though it remains cautious about recruitment in 2025 due to rising costs. Meanwhile, Lidl has recently raised its pay from £12.40 to £12.75 per hour.
Chancellor Rachel Reeves confirmed in the October Budget that, from April, employer National Insurance contributions will also rise, a move that many businesses argue could lead to higher prices, job cuts, and even store closures – though unions have criticised such warnings as overstated.
This News Story is brought to you by QLM Business News, your Digital Media Channel
Visit QLM businessnews.com
For more business news stories also follow us on Facebook, X and Youtube.
To Help qlm business news bring you more new stories like this, please like, share and subscribe.
Unlock unparalleled business growth and effortlessly attract a stream of new customers through QLM Business News Sponsored Advertising. Elevate your brand's presence and captivate your target audience with precision. Visit QLMbusinessnews.com and click on “Advertise” to harness the power of strategic advertising. Don't miss this unparalleled opportunity to propel your business to new heights of success!
Disclaimer: All images presented herein are intended solely for illustrative purposes and may not accurately depict the true likeness of the subjects, objects, or individuals referenced in the accompanying news stories.
