Tesco confirms 5.1% pay rise for hourly staff
The increase means hourly rates will go up to £13.28 from 29th March 2026.
Tesco has agreed a 5.1% pay rise for hourly-paid staff in stores and online fulfilment centres, following talks with union Usdaw.
The increase means hourly rates will go up to £13.28 from 29th March 2026.
The company said this was an investment of over £200m and is above the current national inflation rate.
Over the last five years, hourly pay has gone up by 43%.
The London location allowance will also rise from £1.21 to £1.27, bringing the hourly rate for colleagues within the M25 to £14.55.
Ashwin Prasad, CEO at Tesco UK, said: “Our colleagues play a vital role in delivering for our customers every single day.
“I’m pleased we’re able to announce this pay deal which reflects our deep appreciation for everything they do and represents another meaningful investment in colleague pay.
“Together with our comprehensive benefits package, it reinforces Tesco as a place where people can build a rewarding, long‑term career and continue to grow and thrive.”
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