Hundreds of Tesco employees are in line for a salary boost this month thanks to a £200 million initiative by the UK’s largest supermarket chain. Starting on March 29, wages for retail and online fulfillment center workers will rise by 5.1% to £13.28 per hour. Those working in London will receive an additional £1.27 per hour, bringing their hourly rate to £14.55 within the M25.

These pay adjustments align with the upcoming revisions to the national minimum wage and living wage rates set to take effect in April. Tesco’s wage increase will position its rates above the £12.71 minimum wage for individuals aged 21 and older.

In recent weeks, rival supermarket competitors have also announced salary increments for their employees. Sainsbury’s workers will receive a 5% pay rise this month, elevating the hourly rate to £13.23 nationally and £14.54 in London. Lidl has raised entry-level rates to £13.45 per hour nationwide and £14.80 in the capital.

Aldi is poised to become the highest-paying supermarket in its category by raising pay for store assistants to £13.50 per hour across the country and £14.88 in London starting in April.

Ashwin Prasad, Tesco UK’s chief executive, expressed appreciation for the essential role played by employees in serving customers daily. He stated, “I’m delighted to announce this salary adjustment, which underscores our profound gratitude for their contributions and represents a significant investment in employee compensation.”

Additionally, Tesco disclosed plans to introduce a new policy addressing domestic abuse later this year. This policy will include up to three days of paid leave for employees experiencing abuse.

Daniel Adams, national officer for the trade union Usdaw, noted that the wage increase “widens the gap between Tesco’s pay rates and the national living wage.” He commended the company for being the first retailer to commit to offering paid leave to support staff facing domestic abuse, emphasizing the potential positive impact on affected individuals.