Sainsbury’s increases pay to £11 per hour

Sainsbury’s is increasing the pay of its employees to at least £11 per hour and bringing forward its annual pay rise to February 2023.

The supermarket chain is investing a total of £205 million and hopes the pay rise will help employees with the rising cost-of-living.

Sainsbury’s and Argos hourly retail colleague pay will increase from £10.25 to £11.00 per hour outside of London and from £11.30 to £11.95 per hour in the capital. Sainsburys said that frontline hourly paid staff had been increased by 10 per cent in the last year and 38 per cent over the past six years.

Last year Sainsbury’s, which is the second largest supermarket in the UK with a 14.7 per cent share of the market, invested £25 million in a staff support package to help during the cost-of-living crisis.

In addition to the pay rise, Sainsbury’s is also extending a scheme to provide free food during shifts for a further six months. Staff will also benefit from enhanced discounts at Argos and Sainsburys.

Commenting on the news Simon Roberts, chief executive of Sainsbury’s said: “We are acutely aware of how tough things are for millions of households this winter and we know that particularly after Christmas, budgets will be tighter than ever.

“As well as doing all we can to keep prices low for customers, it’s our job to support our colleagues as they face rising costs. That’s why we are bringing forward the increase and committing a total of £205 million to increase pay to at least £11 per hour this year. We know that colleagues really appreciate having something to eat at work too, so we have also extended the provision of free food during shifts for an extra six months, as well as increasing colleague discount at Argos.”

In November 2022 Sainsbury’s announced a decline in profits as the company invested in lower prices amidst record-high inflation. The retailer recorded pre-tax profits of £340 million in its half year report, down by eight per cent.

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