Tesco Bank to give 90% of staff a cost-of-living pay rise

The firm is giving a £1,250 pay increase (on a full-time equivalent basis) to over 3,400 staff to help them cope with surging inflation rates, effective from 8 January 2023.

The increase came after negotiations between Tesco Bank and trade unions USDAW and Unite, is in addition to the bank’s annual pay review which will follow in May 2023 as normal.

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Tesco Bank Chief Executive, Gerry Mallon, said: “The rising cost of living is having an impact on households across the country, and we’ve been listening to colleagues about how this is affecting them. That’s why we’ve taken action and awarded a permanent increase to base pay for the majority of our colleagues.

“The salary increase aims to provide sustainable, long-term support to colleagues, including our contact centre colleagues who show great commitment to helping our customers in the current economic climate.”

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Usdaw National Officer Daniel Adams said: “Not only is this a welcome step but, given this is a permanent increase rather than one off payment, it will also flow through into other elements of the reward package, including pensions and bonus. Furthermore, the approach demonstrates the value of employers working positively with trade unions.”