Competition among supermarkets to retain workers has seen Sainsbury’s announce fresh pay rises from March.
It will increase minimum pay for employees outside London to £12 an hour, with wages for staff inside the M25 increasing to £13.15 an hour, just a few pence short of what the sector’s top payer, Aldi, is offering.
Sainsbury’s workers outside London are currently paid £11 an hour, while those in London recei ve £11.95 an hour.
About 120,000 staff will benefit from the increase, Sainsbury’s said.
Pay in the retail sector
Aldi announces pay rise for 2024
Amazon minimum pay to rise twice in six months
The increase means all of Sainsbury’s workers will be paid the voluntary real Living Wage, which is higher than the compulsory national living wage. With the latter set to rise to £11.44 in April 2024 and include 21-22 year olds for the first time, Sainsbury’s will now be paying its workers 56p more per hour than the government’s minimum wage. They will receive the rise a month before the new minimum wage rate comes into effect.
Simon Roberts, the chief executive of the retail giant, which also owns Argos, said: “Our colleagues do a brilliant job delivering for our customers every day and at the same time they are continuing to face the rising costs of living.”
Bally Auluk, national officer at the shop workers’ union Usdaw said: “The continuing strong working relationship between Usdaw and Sainsbury’s has resulted in an inflation busting pay award of over 9%.
“The current cost of living is still on the rise which is why Usdaw are very pleased the business has taken this on board during our consultations.”
Sainsbury’s has increased employee pay by 50% since 2018 and by 9% since last year.
In September 2023 Lidl became the highest paying supermarket in the sector, with store and warehouse staff working outside the M25 received an hourly pay rise of £11.40 from £11, rising to £12.30 with length of service. Wages for workers inside the M25 nudged up to £12.85 from £11.95, rising to £13.15 – the same as Sainsbury’s new rate.
In December, Aldi trumped Lidl, announcing a pay rise for 2024 from 1 February increasing wage rates for store assistants to £12.95 nationally, and £13.55 to £13.85 within the M25, based on length of service.
The UK’s biggest supermarket, Tesco, since 2 April 2023, has paid £11.02 per hour to workers (£11.75 within M25).
Sign up to our weekly round-up of HR news and guidance
Receive the Personnel Today Direct e-newsletter every Wednesday
Latest HR job opportunities on Personnel Today
Browse more human resources jobs
