The UK’s second-largest supermarket chain has revealed its 127,000 hourly-paid staff are to receive a pay boost earlier than planned to help with the cost of living.
Sainsbury’s said its supermarket and Argos workers outside London would get at least £11 an hour, up from £10.25, from February.
Those working in the capital would see their hourly wage rise from £11.30 to £11.95, the company said.
It marked the second increase since October – with employers keen to retain and attract staff in the tight labour market.
The announcement also confirmed a six-month extension of its free food offer for store and depot colleagues during their shifts.
Sainsbury’s said the latest pay rise would come at a cost of £185m – on top of the £20m it invested in October – making it the biggest investment in pay the company had ever made.
The annual pay review normally takes effect in March.
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Its statement said the decision to bring it in a month early was in reaction to the continuing cost of living difficulties and “the extraordinary hard work of colleagues”.
Industry data released earlier in the day by Kantar Worldpanel suggested that Sainsbury’s enjoyed a 6.2% rise in sales values during the festive season – just behind its main rival Asda.
Market leader Tesco, Kantar said, saw growth of 6%.
The pay increases meant that staff had been awarded a 10% rise over the course of the past 12 months, Sainsbury’s said.
The figure is almost in line with the rate of inflation – mostly driven by soaring energy costs in the wake of the war in Ukraine.
Many unions across the public and private sectors are seeking pay hikes in excess of the core consumer prices index (CPI) measure, currently at 10.7%, in favour of a retail prices index hike which is at 14%.
Thousands of rail workers and National Highways staff belonging to the PCS union are striking on Wednesday.
