Tesco’s Pay Raise in June 2024: A Step Toward Fair Compensation


Tesco, one of the UK’s largest and most influential supermarket chains, has recently announced a significant pay raise for its hourly-paid colleagues, set to take effect in June 2024. This boost in compensation reflects Tesco’s ongoing commitment to recognizing the hard work and dedication of its employees, particularly in an era where fair compensation and employee welfare are increasingly in the spotlight. In this comprehensive analysis, we will explore the details of this pay raise, its impact on various job titles, and the additional benefits being introduced to further support Tesco’s workforce.

Tesco's Pay Raise in June 2024: A Step Toward Fair Compensation

Hourly Rate Increase

Base Pay

From June 2024, Tesco’s hourly rate will increase from £12.02 to £13.02 per hour. This represents a 9.1% rise in base pay, which positions Tesco’s pay scale above the 2024 ‘real’ Living Wage outside London. This increase is part of Tesco’s largest-ever single investment in hourly colleague pay, amounting to more than £300 million.

Record Investment

The substantial pay raise is a key component of Tesco’s record investment in its workforce. By allocating over £300 million towards hourly colleague pay, Tesco is making a clear statement about the value it places on its employees and their contributions to the company’s success.

Impact on Specific Job Titles

The pay raise will affect various job roles within Tesco, each receiving adjustments to reflect the new pay structure. Here’s how the pay raise will impact some of the key roles:

Customer Assistants

Customer assistants are on the front lines of Tesco’s operations, providing essential services to customers. With the new pay raise:

  • The average hourly wage for customer assistants will now be £13.02.
  • This increase underscores Tesco’s recognition of the essential work done by these front-line staff.

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Shift Leaders

Shift leaders play a critical role in managing daily operations and ensuring smooth workflow within stores. With the new pay raise:

  • Shift leaders will receive an additional skills payment, raising their hourly rate to £13.28.
  • This adjustment reflects Tesco’s commitment to rewarding leadership and the added responsibilities that come with such roles.

London Allowance

Recognizing the higher cost of living in London, Tesco is introducing a London Allowance to better support colleagues working within the M25:

  • For colleagues working in London Boroughs, their allowance will increase to £11.95 per hour.
  • For colleagues working in Outer London (inside the M25 but excluding London Boroughs), their allowance will increase to £11.75 per hour.

Additional Benefits

Beyond the hourly pay raise, Tesco is also enhancing several additional benefits to further support its employees. These enhancements include improvements in paternity leave, sick pay, flexible working options, and family leave policies.

Paternity Leave

Tesco is setting an industry standard by increasing paid paternity leave to an industry-leading 6 weeks on full pay. This change underscores Tesco’s commitment to supporting new parents and promoting a healthy work-life balance.

Sick Pay

To better support employees during times of illness, Tesco is extending the maximum company sick pay entitlement to 18 weeks for eligible colleagues. This extension provides greater financial security for employees who need time off due to health issues.

Flexible Working

Tesco continues to lead in promoting flexible working arrangements by offering the right to request flexible working from day one of employment. This policy helps employees balance their work commitments with personal and family responsibilities.

Family Leave Policies

Tesco’s enhanced family leave policies include 26 weeks of fully-paid maternity, adoption, and kinship leave. These policies reflect Tesco’s understanding of the importance of family and its dedication to providing comprehensive support to employees during critical life events.

Colleague Clubcard Discount

To further benefit its employees, Tesco offers a generous Colleague Clubcard discount:

  • Colleagues can enjoy up to 15% off their shopping, with an annual allowance increased from £1,500 to £2,000.
  • This discount can also be shared with a family member in a second household, providing additional support to employees and their families.


Tesco’s pay raise in June 2024 marks a significant step toward fair compensation and improved employee well-being. By investing over £300 million in wage increases and enhancing additional benefits, Tesco demonstrates its commitment to valuing and supporting its workforce. These changes not only benefit Tesco employees by providing better financial stability and job satisfaction but also set a positive example for the broader retail industry.

As Tesco continues to invest in its workforce, colleagues can look forward to better opportunities, financial stability, and a supportive work environment. The June 2024 pay raise is a significant step forward for retail workers, reinforcing Tesco’s dedication to supporting its team members and creating a positive, rewarding workplace. 🛒💙


  1. Tesco announces biggest ever single investment in store colleague pay
  2. Tesco pay rise 2024: hourly rate increased above Living Wage
  3. Tesco Pay Deal: Tesco Announces Pay Rise for 2024
  4. Britain’s Tesco under pressure to raise staff pay rates – Euronews

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