Tesco has announced an increase in pay for frontline staff to up to £12.02 per hour, calling this its “biggest ever single investment” in colleagues.

Tesco colleague

Tesco is rewarding colleagues with increased benefits including six weeks’ paternity leave

The retailer said the new rate will come into effect from April 2024 and represents a 9.1% increase in base pay, equating to a more than £300m investment.

The grocer said it has created one “London allowance” area at £13.15 per hour for stores within the M25 – up from the previous £11.95 for inner London.

Tesco said that, along with the pay rise, it “continues to support colleagues’ health, wellbeing and family commitments”.

A boost in paternity leave to an industry-leading six weeks fully paid, plus an increase in maximum company sick pay entitlement to 18 weeks were also announced.

The retailer also offers staff up to a 15% discount on their shopping via its Colleague Clubcard scheme, free food in canteens and a pay advance scheme.

Mathew Barnes, chief executive of Tesco UK and Ireland, said: “This represents another significant investment in our colleagues, building on the last two years of investment. We recognise the amazing work our colleagues do every day in serving our customers and we’re really proud to offer such competitive rates of pay alongside a great range of exclusive colleague benefits.”