Zarah ChoudharyMarks & Spencer has announced a £95m investment in its retail pay offer.
The rate of pay for UK Customer Assistants – approximately 50,000 staff – will increase from £12 to £12.60 per hour from 1st April 2025.
This is the biggest investment M&S has made in its retail pay offer and third consecutive increase since Stuart Machin became CEO in 2022, despite new cost pressures from the Government.
This pay increase represents a 5% increase on last year and a 26% increase since 2022, which is double the rate of inflation over the same period (13.5%).
For a full-time colleague outside of London, that is an increase of around £98 per month compared to the current rate.
For customer assistants working in London, the hourly rate will increase from £13.15 to £13.85, representing a 5.3% increase on last year.
For UK team support managers, the hourly rate will increase from £13.05 to £13.65, while for those in London, it will increase from £14.20 to £14.90.
Last year, M&S invested £89m in its UK retail pay and a further £5m annual investment to enhance its maternity, paternity, and adoption policies.
The 2025 investment means that since 2022, M&S has invested more than £285 million in its retail pay package.
It also means that every UK store colleague will continue to be paid the Real Living Wage as their base pay, with M&S’s wide range of benefits – such as its industry leading 20% colleague discount, which when combined could be worth up to £15.40 per hour.
The benefits package offers a range of industry-leading perks designed to support colleagues in various aspects of their lives.
Employees benefit from an uncapped 20% discount on all M&S-branded food, clothing, home, and beauty products, as well as selected branded items.
The company also provides pension contribution of up to 12%, along with the opportunity to participate in the colleague Sharesave scheme.
Health and wellbeing are prioritised through access to a 24/7 virtual GP service and an employee assistance programme available to colleagues and their families.
Additionally, employees receive 26 weeks of maternity or adoption leave at full pay, as well as six weeks of paternity leave at full pay.
Those with babies requiring specialist neonatal care can take up to 12 weeks of fully paid Neonatal Leave without using their maternity, paternity, or adoption leave.
Further financial and health support include life cover of up to four times an employee’s salary, free eye tests at M&S Opticians, and access to six free physiotherapy sessions.
The benefits package also provides access to Check4Cancer support, with risk assessments for the five most common cancers in the UK and free screenings for colleagues at higher risk.
Additionally, M&S offer dedicated support for colleagues experiencing menopause, including tailored uniforms and specialist line manager training.
Stuart Machin, chief executive at Marks & Spencer, said: “Following the Government’s recent increases in tax and national insurance contributions, it’s no secret that M&S and indeed the entire retail sector has some significant cost headwinds to face into in the new financial year.
“However, I have always believed that we should not allow these headwinds to impact our hourly paid colleagues, which is why today, for the third year in a row, we are making a record investment in our retail pay offer.
“This means we have now invested almost £300m in our pay over the past three years, well above the rate of inflation, in addition to our market leading discount and pension offer for colleagues.”
