Tesco Ireland has committed to give its retail employees an overall 10% pay rise, split across three years as part of a pay rates investment and benefits enhancement.
The 10% pay award covers 2021, 2022 and 2023, with 2.5% of the total backdated to April 2021. A 6% pay rise took effect from 1 April 2022 and a 4% increase will be effective from 1 April 2023.
According to Tesco, the pay award follows a recent investment in benefits which has included paid maternity, paternity and adoptive leave, and the introduction of a new pension plan, which represents a total investment in pay and benefits of €40 million (£34.2 million). As many as 70 employees are now benefitting from paid maternity, paternity, and adoptive leave, and 1,000 more workers are now saving for their retirement who were not previously.
Sign up to our newsletters
Receive news and guidance on a range of HR issues direct to your inbox
The salary increase is in addition to two years of discretionary staff bonus payments of 2.5% for 2021 and 2% for 2022. The business has paid a further €10 million (£8.5 million) in bonus payments to its members of staff since the start of the Covid-19 (Coronavirus) pandemic, as well as offering enhanced discounts, life assurance and earlier access to rewards for new workers.
Natasha Adams, chief executive officer of Tesco Ireland, said this was a positive move for the retailer’s staff.
She continued: “I am pleased to be able to make this announcement for our colleagues at a challenging time for families with rising living costs. Solidifying this pay award will help to provide certainty of pay and benefits for our colleagues, secure our business and jobs in the years ahead and continue to make Tesco a great place to work. Our colleagues are at the heart of our business, and I thank them for their continued hard work and dedication to serving our customers and communities.”