Tesco has given its store and warehouse workers a 10.45% rise in hourly pay over the next two years, taking the hourly rate up to £9.30.  This will be offset by ditching the staff’s annual bonus.

The supermarket retailer will increase its minimum hourly rate for store and warehouse workers from £8.42, which is among the lowest in the sector, to £9 an hour.  This will move it in to line with the current rates paid by Lidl and Asda and put them ahead of Morrison’s.

The pay rise, which will amount to nearly £1,200 for someone on a 30-hour contract, will be offset by the loss of the annual bonus, which amounted to a maximum of 3.5%.