Etailer Boohoo has awarded staff at its distribution centre a 12% pay rise in an effort to help improve employee engagement.

Boohoo said it had made the decision to increase pay to recognise the efforts of staff who “have made the successful business it is today”.

The etailer said it hopes the pay rise will improve employee engagement and attract more candidates to fill roles at its 150,000 sq ft Burnley site.

Boohoo’s decision coincides with online giant Amazon coming under fire for its pay and working conditions. Union GMB launched a campaign last week to urge the Co-op to remove Amazon lockers from its stores in protest over the alleged low level of pay the etailer gives to staff.

Amazon’s permanent employees start at a minimum of £7.10 per hour increasing to a median of £8.00 per hour after 24 months.

Boohoo employs 450 employees at the distribution centre and has filled 200 permanent roles in the past three months. It is currently adding 100,000 sq ft of space to the site, investing an estimated £15m, to fulfil its growth ambitions.