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Tesco is making a major change to what it pays supermarket staff from July

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Supermarket giant Tesco has announced a major change to its pay for hundreds of thousands of employees. Tesco has said that its hourly pay for shop staff and warehouse workers will be increased by 5.8% from £9.55 to £10.10.

The retailer, which is the UK’s largest private employer, said the pay increase will come into force from July 24. It added that the new rate of pay is part of a £200 million investment by the company into its workers, which will also include an extension of the colleague discount allowance and new training. READ MORE: Primark has finally launched a website with thousands of clothes, home and beauty products The move comes after a raft of supermarket rivals, including Sainsbury’s, Morrisons, Lidl and Aldi, increased their rate of basic pay.

Tesco also confirmed on Thursday that it will increase the hourly rate for its customer delivery drivers and click & collect assistants to £11 from July, says PA. “This new deal recognises the contribution our colleagues make to our business at a time when household budgets are under pressure,” the company said. “Given the uncertainty in the economic environment, this will be a one-year deal, rather than two-year, and we will review pay again with Usdaw (Union of Shop, Distributive and Allied Workers) in 2023.” The retailer said it will also increase staff members’ Clubcard discount allowance by £500 to £1,500 for the year as part of investment into the firm’s rewards packages.

Jason Tarry, chief executive of Tesco UK & ROI, said: “We are delighted to have reached an agreement with Usdaw that recognises the vital role our colleagues play in our business now and in the future, giving them a well-deserved pay rise, more access to extra hours and setting out a

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