Sainsbury’s has announced that it will increase pay for its 118,000 hourly-paid colleagues by a total of five per cent this year, taking the total salary for a full time colleague outside London from £22,882 to £24,026 by August 2025.

Colleagues across both Sainsbury’s and Argos will move from £12 to £12.45 per hour in March, and £13.15 to £13.70 for those based in London, with a further increase to £12.60 per hour in August and £13.85 for those based in London. By August, pay for hourly-paid colleagues will have increased by 58 per cent since 2018.

The increase is being split this year to allow Sainsbury’s to navigate a challenging cost environment, while ensuring it continues to lead the sector in how it rewards its brilliant colleagues.

Simon Roberts, Chief Executive of Sainsbury’s, said: “Our people are fundamental to achieving our Next Level Sainsbury’s plan and we are pleased to announce that we will raise pay for our hourly-paid colleagues by five per cent in the year ahead, split into two separate increases to help manage a particularly tough cost inflation environment.

"We believe in rewarding our colleagues well for delivering leading service and productivity and we will be the best paying UK grocer from March.”

Paddy Lillis, Usdaw General Secretary, said: “Usdaw has a longstanding and valued relationship with Sainsbury's and we welcome the staff pay increase in line with new real living wage rates. Our members are key workers in the business and it is only right they are fairly rewarded with a living wage.”

Bally Auluk, Usdaw National Officer, said: “The working relationship between Usdaw and Sainsbury’s continues to strengthen, and we are pleased that the company has again worked closely with our Union’s representatives, during the recent pay consideration meeting. The business has decided to make a pay award totalling 5 per cent, despite lower inflation rates than last year and following on from previous significant pay increases."

"The cost of living continues to be a key concern for our members, so the business’ decision to respond in such a positive manner, by matching the Real Living Wage once more, is a welcome one for our members.”