For the first time, Sainsbury’s has introduced a staff pay rise outside of the annual pay review to help employees manage the pressure of rising costs.
The £25 million investment will support hourly paid staff with access to free food and discounts - and a huge £20 million of the sum will go towards increased pay.
Hourly rates at Sainsbury’s and Argos will rise from £10.00 to £10.25 and from £11.05 to £11.30 per hour for London staff.
The new hourly rates will come into effect from 16 October and it is expected to benefit 127,000 hourly paid colleagues across retail, local fulfilment centres and customer service contact centres.
It will not affect the timing of the next annual pay review, which will still go ahead in the new financial year.
The new cost-of-living support package will also give staff access to basic food items from October until the end of December, as well as increased discounts at both Sainsbury’s and Argos.
Sainsbury’s employees have had at least two pay rises this year, which brings the total investment into colleague pay to £150 million.
Pay increases for frontline hourly paid colleagues have now reached 7.9% this year and 28% over five years.
Sainsbury’s chief executive Simon Roberts said: “Every day, I am hearing from colleagues who are really feeling the pressures of the rising cost of living”.
“That’s why we are doing everything we can to help our colleagues as they face rising bills and living costs this autumn by investing £25 million into a package of support, including an early pay increase. This is the first time we have given two pay rises in the same year.
“Our top priority is to support our customers and colleagues. We are proud of our track record on colleague pay and, with this latest package of an additional pay rise, free food at work and bigger colleague discounts, we are very focused on doing as much as we can to help our colleagues and their families through this autumn and winter.”
And the support doesn’t end there, as the supermarket’s 10% staff discount, offered for five days around payday, has increased to 15%.
This year alone, Sainsbury’s will have invested in three times as many 20% discount days as last year.
Starting from 23 September, the supermarket will also increase staff discounts at Argos to 15% for one day every payday Friday until Christmas to help colleagues plan for their festive shops.
