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Nearly 250,000 Tesco staff are going to get a pay rise

PUBLISHED: 10:19 26 June 2017 | UPDATED: 10:19 26 June 2017

Tesco has announced it will boost the pay of 250,000 staff over the next 18 months. Picture: Rui Vieira/PA Wire.

Tesco has announced it will boost the pay of 250,000 staff over the next 18 months. Picture: Rui Vieira/PA Wire.

Supermarket chain Tesco said it is making its biggest investment in store pay for a decade, by handing around a quarter of a million staff a 10.5% pay rise.

It will increase the hourly pay rate of 250,000 workers from £7.62 an hour to £8.42 by November 2018.

However, the firm will also cut pay for staff working Sunday and bank holidays, with wages shifting from time and a half to time and quarter from July 2018.

Matt Davies, chief executive of Tesco UK, said: “This reward package sees our biggest investment in store pay for a decade, and gives colleagues a sustainable pay deal that rewards them for everything they do, while allowing us to also attract new talent.

“We also want to do all we can to help working parents and that’s why we are proud to offer a much improved maternity package to our colleagues.”

The pay boost will be rolled out to workers in three stages, rising from £7.62 to £8.02 in November 2017, before climbing from £8.02 to £8.18 in July 2018, and finally stepping up from £8.18 to £8.42 in November 2018.

However, staff will earn an equivalent hourly rate of £9.52, once benefits are taken into account such as bonuses and pension payments.

Tesco said the pay rise, which was agreed after talks with the union Usdaw, will leave 97% of staff better off.

It added that staff working Sundays and bank holidays who are left worse off from the deal will be handed a lump sum in July 2018 to make up the difference for the next 18 months.

The move comes after Tesco announced on Wednesday that it would axe up to 1,100 jobs as part of plans to shut its call centre in Cardiff.

Tesco has more than 6,000 shops across the world, employing 460,000 staff.

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