More than 60,000 Co-Operative employees will see rates of pay increase by at least 8.5% over the next two years after a pay settlement was agreed.
The 8.5% increase to the minimum basic pay rates applies to food store shop assistants and their supervisors. Other employees will be covered by separate arrangements.
Full-time employees will see their pay increase by around £1,200.
The move will also simplify existing reward practices, improve consistency and better align to market practices among food retailers.
The rise will be phased in from October after the Co-Operative Employers Association and the Union of Shop, Distributive and Allied Workers (USDAW) agreed the settlement, with members of the trade union voting in favour of the increase in April.
The deal covers a number of the Co-Operatives in the UK, including; The Co-Operative Group, Central England Co-Operative, The Midcounties Co-Operative, Lincolnshire Co-Operative, The Radstock Co-Operative Society and Chelmsford Star Co-Operative Society.
Tim Knowles, secretary to the Co-operative Employers Association, said: “The settlement is a significant investment, estimated to be worth in excess of £85 million a year.
“Minimum pay rates for a full-time employee will now increase by around £1,200 a year, which will complement the reward package on offer if they join one of the Co-operative retailers in the UK.
“This is a great opportunity to attract, retain and engage with our customer facing employees.”