The John Lewis Partnership has on Wednesday announced a £108 million investment in pay, with shop floor staff at Waitrose and John Lewis set to receive a 6.9 per cent increase from April, as competition for supermarket workers continues to drive wage growth across the grocery sector.
From 1 April, minimum hourly rates will rise to £13.25 across the UK and £14.80 within the M25. The Partnership said this equates to around £1,600 extra a year for a typical full-time employee.
Pay rates will increase further for Partners who develop enhanced skills and take on specialist roles, rising to £14.31 an hour nationally and £15.98 in London.
The employee-owned retailer said nearly 90 per cent of the £108m investment is voluntary and goes beyond National Minimum Wage requirements, underlining its strategy to invest in staff retention and engagement. The latest increase follows nearly £300m added to its pay budget over the previous three years.
“Our Partners are the heartbeat of our business. This £108m investment is about putting more money into their pockets month-in, month-out,” Helen Webb, chief people officer at the John Lewis Partnership, said.
“This pay growth demonstrates a sustained commitment to Partner pay, consistent with previous years. This ensures that the rewards for our Partners’ hard work are built into their monthly pay as we continue to invest in the future of the Partnership.”
Alongside base pay, staff receive a range of benefits including employee discounts at Waitrose and John Lewis, up to 12 per cent pension contributions, subsidised meals, discounted hotel stays, wellbeing support and funding for personal development and leisure activities.
Supermarket pay battle
The move comes amid a wave of pay increases across the supermarket sector, as retailers compete to attract and retain staff.
Earlier this month, Lidl GB announced a £29m investment in wages, increasing entry-level hourly pay to £13.45 nationally and £14.80 in London from March, rising further with length of service.
Aldi had already committed £36m in January to raise store assistant pay to £13.35 an hour nationally and £14.71 within the M25, while Sainsbury’s confirmed a five per cent increase taking hourly rates to £13.23 nationally and £14.54 in London.