Finance
Britain's Tesco Boosts Hourly Pay to 13.28 Pounds
Published by Global Banking & Finance Review®
Posted on March 18, 2026
1 min readLast updated: March 18, 2026
Quick Summary
Tesco, the UK’s largest food retailer, agreed with union USDAW to raise store and online fulfilment staff wages to £13.28 per hour from 29 March, reflecting its ongoing investment in frontline pay amid sector-wide wage competition.
Tesco Raises Hourly Pay for UK Store and Online Staff to £13.28
Details of Tesco's Pay Increase Agreement
Agreement with Trade Union USDAW
March 18 (Reuters) - Tesco, Britain's biggest food retailer, said on Wednesday it has reached an agreement with trade union USDAW to increase hourly pay rate for staff in stores and online fulfillment centers to 13.28 pounds an hour from March 29.
Effective Date and Coverage
Reporting and Editorial Information
(Reporting by Rishab Shaju in Bengaluru; Editing by Leroy Leo)
Key Takeaways
- •Tesco’s new £13.28 hourly rate comes into effect on 29 March 2026 following negotiations with USDAW, boosting pay above recent levels
- •This move continues Tesco’s multi‑year wage progression—staff saw 5.2% increase in 2025 raising rates to £12.64, part of a £180m investment (usdaw.org.uk)
- •Despite the rise, Tesco remains slightly behind leaders like Aldi (£13.35) and Lidl (~£13.45), while competitors such as Sainsbury’s (£13.23) and Lidl continue intensifying grocery wage competition (prestonblog.co.uk)
References
Frequently Asked Questions about Britain's Tesco boosts hourly pay to 13.28 pounds
1What is Tesco's new hourly pay rate for staff?
Tesco has increased its hourly pay rate to £13.28 for staff in stores and online fulfillment centers.
2When will the new Tesco pay rate take effect?
The new pay rate of £13.28 per hour will be effective from March 29.
3Who did Tesco reach an agreement with regarding the pay increase?
Tesco reached the pay increase agreement with the trade union USDAW.
4Which staff are affected by Tesco's pay increase?
The pay increase applies to staff working in Tesco stores and online fulfillment centers across the UK.
