Sainsbury’s invests £100m in raising basic hourly pay

Sainsbury’s has just announced an increase in its basic hourly rate of pay for all Sainsbury’s and Argos store colleagues from £9.50 to £10 an hour, in recognition of the extraordinary work they do for customers.

This will increase from £10.10 to £11.05 for colleagues in inner London and from £9.75 to £10.50 in outer London.

Sainsbury’s is also increasing additional payment rates for drivers. Groceries Online drivers will now get £11.50 per hour, with a basic rate of £10 per hour plus an extra £1.50 per hour.

Argos Fast Track Delivery drivers will receive £11 per hour based on a base rate of £10 per hour plus an extra £1, up from 75p. While demand for online deliveries remains high, this enhanced pay will help the retailer recruit and retain the best talent.

The new rates of pay exceed the National Living Wage and the National Real Living Wage and represent a £100 million investment from Sainsbury’s in its store colleagues. This year’s 5.3% increase means that Sainsbury’s hourly colleague pay has increased by 25% over the past five years.

The pay increases will come into effect from Sunday 6th March 2022 with the first pay day being 8th April.

As part of their reward package, all Sainsbury’s, Argos and Habitat colleagues receive 10% discount on their shopping at all three brands. At certain times during the year the colleague discount in Sainsbury’s increases to 15%, saving a typical store colleague about £300 per year. This increase will now occur every pay day for five days to help colleagues plan their budgets and their shopping better.

Simon Roberts, Chief Executive Officer at Sainsbury’s, said, “To kick off the New Year, I am pleased that one of the first things we are doing is investing in our colleagues and lifting our basic hourly rate of pay to £10. We are making this significant investment to show our colleagues how much we value the brilliant job they do for our customers every day.

'It also reflects the significant progress we are making against our plan and to save money we can invest in lower prices, offer fantastic colleague service and make shopping convenient for customers.

“We have also listened to our colleagues and are enhancing our colleague discount scheme to help them plan their grocery spend and manage their shopping budgets better, which could save colleagues hundreds of pounds a year.”

Simon Clarke, MP, Chief Secretary to the Treasury, added, “The Government is on the side of working people – which is why we’re increasing the National Living Wage in April, giving a full-time worker an extra £1,000 a year.

“Our Plan for Jobs will continue to ensure hard work pays and I fully welcome Sainsbury’s decision to invest in its staff and give them a well-deserved pay boost.”