Tesco to pay staff thank-you bonus of 1.25% of annual wages

tesco bonus

Supermarket chain Tesco has introduced a thank-you bonus of 1.25% of annual wages for its store, customer fulfilment centre and customer engagement centre staff.

This bonus has been implemented to recognise the hard work of Tesco employees during the industry challenges of the past year, and will apply to between 280,000 and 290,000 members of staff.

The payment will be made at the end of May 2022, and adds to a recent pay agreement reached alongside the Union of Shop, Distributive and Allied Workers (USDAW), which will be effective from 24 July.

The deal included a rate increase of 5.8% for hourly-paid store and customer fulfilment centre colleagues, from £9.55 to £10.10, which represents an approximate investment on £200m, and a rate increase of more than 40% over the past 10 years.

Meanwhile, delivery drivers and Click and Collect delivery assistants have seen their skills payment increase by 90p per hour, taking their hourly rate to £11.

In addition, the supermarket chain has increased its Colleague Clubcard discount allowance by £500, to £1,500 for all employees.

Tesco also pledged to offer any vacant hours to internal employees working fewer than 16 hours a week before recruiting externally, with all new contracts based on a minimum of 16 hours per week.

Tesco noted that due to increased economic uncertainty, this pay deal with be in place for one year, rather than two, before it is renegotiated with the union.

Ken Murphy, chief executive of Tesco, said: “Over the last year, we delivered a strong performance across the group, growing share in every part of our business. We did this by staying focused on our customers and doing the right thing for our colleagues, our supplier partners and the communities we serve.

“I want to thank all of our colleagues who did a brilliant job navigating the ongoing pandemic, dealing with the supply chain challenges in the industry and tackling the onset of increasing inflation.”

Jason Tarry, UK and ROI CEO at Tesco, added: “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 long-term commitment and investment in their careers at Tesco.

“These investments in our colleagues are central to making Tesco what we truly want it to be: a great place to work for all. A place that attracts and retains the best talent in the industry.”