Tesco UK: major groceries supermarket to scrap Sunday pay, but will raise wages by 5% - jobs and careers

The UK’s largest supermarket chain has announced a pay rise of over 5% for its shop workers over the next six months following an agreement with unions.

But at the same time, Tesco revealed plans to scrap the Sunday pay premium currently offered to many store employees.

The chain said on Monday (March 17) it would invest £180 million in the wage increase. The move comes as the UK national minimum wage is set to rise to £12.21 an hour on April 1.

How much money do Tesco staff get?

Under the deal with sector trade union Usdaw, the hourly wage for Tesco store staff will rise from £12.02 to £12.45 on March 30, before increasing again to £12.64 at the end of August.

Tesco said the two-stage pay rise amounts to a 5.2% increase, outpacing inflation. London-based store workers will see their hourly rate increase from £13.15 to £14.36 by the end of August.

Matthew Barnes, Tesco UK chief executive, said: “Our colleagues are our greatest asset, and this pay deal recognises the brilliant work they put in day-in, day-out to serve our customers.

“It also represents another significant investment in our colleague pay, which combined with our fantastic package of benefits, means Tesco continues to be a place to get on and thrive in a fulfilling and rewarding career.”

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Why is Tesco getting rid of Sunday bonus pay?

As part of the new pay deal, Tesco will also remove the 10% pay premium currently given to store staff working Sunday shifts, a benefit it had already discontinued for new hires.

The retailer said the change aligns its policy with the other “big four” UK supermarket chains. To support affected employees, Tesco will provide a one-off payment covering the next 18 months as the premium is gradually phased out.

What do you think of Tesco’s new pay deal? Are the wage increases a fair trade-off for losing Sunday premium pay? Share your thoughts in the comments section.