Sainsbury’s will increase pay for its 118,000 hourly-paid staff by five percent this year as part of the employer’s ‘Next Level’ plan.
The raise means that total salary for a full time worker outside London will increase from £22,882 to £24,026 by August 2025.
Employees across Sainsbury’s and Argos will see their hourly wage increase from £12 to £12.45 an hour in March, while workers in London will see pay increase from £13.15 to £13.70. Hourly pay will rise again in August to £12.60 for people outside London and £13.85 for those based in the capital.
The retail firm said this means that by August, pay for people paid hourly will have jumped up by 58 percent since 2018.
Hourly pay rises are happening twice this year, rather than once, to enable the employer to “navigate a challenging cost environment, while ensuring it continues to lead the sector in how it rewards its brilliant colleagues”, the company said.
Simon Roberts, chief executive of Sainsbury’s, said: “Our people are fundamental to achieving our Next Level Sainsbury’s plan and we are pleased to announce that we will raise pay for our hourly-paid colleagues by five percent in the year ahead, split into two separate increases to help manage a particularly tough cost inflation environment.
“We believe in rewarding our colleagues well for delivering leading service and productivity and we will be the best paying UK grocer from March.”
Paddy Lillis, general secretary at retail union Usdaw, said: “We have a longstanding and valued relationship with Sainsbury’s and we welcome the staff pay increase in line with new real living wage rates. Our members are key workers in the business and it is only right they are fairly rewarded with a living wage.”
Usdaw national officer Bally Auluk added that the working relationship between the union and retailer “continues to strengthen”.
“The business has decided to make a pay award totalling 5 percent, despite lower inflation rates than last year and following on from previous significant pay increases.
“The cost of living continues to be a key concern for our members, so the business’ decision to respond in such a positive manner, by matching the real living wage once more, is a welcome one for our members.”
