Tesco workers will be offered advances on their pay in an attempt by the supermarket to help support them during the cost-of-living crisis. The UK’s largest private employer said it hopes the move will benefit workers in the run-up to Christmas.
It comes days after confirmation that inflation surged to a 41-year high of 11.1% last month, driven by jumps in the cost of energy and food. The grocer said that around 280,000 employees could benefit from the new scheme which will allow workers to get up to 25% of their contractual pay early.
Workers will pay a fee of £1.49 per advance to Salary Finance, the firm’s financial employee benefits partner. The supermarket firm said the move is designed to help colleagues avoid having to take on expensive debt with high interest payments, such as pay day loans.
It comes a month after Tesco handed hourly-paid workers a second pay rise this year. James Goodman, UK people director at Tesco, said: “We know that colleagues can face unexpected bills, such as car repairs or replacing a washing machine, which can leave them short.
“To give them a helping hand with their financial wellbeing, we have launched Pay Advance to give them a simple and low-cost way to access some of the money that they have already earned. We hope this helps to support colleagues, particularly in the run up to Christmas.”
