Sainsbury’s has announced a 5 per cent pay increase for its hourly-paid colleagues from March 2026, with rates rising to £13.23 per hour nationally and £14.54 per hour in London.
The uplift, which the retailer says is above inflation, will see full-time hourly-paid colleagues receive an increase of more than £1,200 a year, in addition to a benefits package that includes a pension scheme, share-save scheme, free food during shifts and colleague discounts, which Sainsbury’s estimates can save staff over £600 annually on an £80 weekly shop.
The move builds on several years of sustained investment in colleague pay, with Sainsbury’s revealing it has increased wages by 42 per cent over the past five years.
Simon Roberts, chief executive of Sainsbury’s, said colleagues remain central to the business’s performance and recent growth.
“Our colleagues are at the heart of our business. Their hard work, dedication and commitment have driven our strong momentum and helped us win grocery market share growth for the sixth consecutive Christmas period,” he said.
“I’m delighted to share that we will be raising pay for our hourly-paid colleagues by five per cent this year. This increase reflects our commitment to rewarding our colleagues for their exceptional service and productivity.”
Sainsbury’s has recently reported a record-breaking performance in its convenience estate over the Christmas trading period, as strong growth in fresh food and last-minute shopping helped drive overall grocery momentum. Group grocery sales rose 5.4 per cent year on year in Q3, while total Sainsbury’s sales increased 4.9 per cent in the 16 weeks to 3 January 2026.
Usdaw general secretary Joanne Thomas welcomed the move.
“Usdaw has a longstanding and valued relationship with Sainsbury’s and we welcome today’s announcement of an above inflation pay rise,” she said. “Our members are key workers in their communities and crucial to the success of the business. It is only right they are fairly rewarded for their hard work.”
The announcement comes amid intensifying competition for retail staff across the grocery sector. Earlier this month, Aldi confirmed increases to its pay rates from 1 March 2026, with store assistant wages rising to £13.35 per hour nationally (up to £14.30 with service) and £14.71 within the M25 (up to £15.03 with service).