Hundreds of thousands of Tesco employees are set to receive a significant pay rise at the end of this month, as part of a substantial £200 million investment announced by the UK's largest supermarket chain. This move highlights a broader trend of wage increases across the retail sector, coinciding with new national minimum wage rates taking effect from April.
Supermarket Pay Rates for 2026: A Detailed Breakdown
From March 29, Tesco will increase pay for shop workers and online fulfilment centre staff by 5.1%, raising the hourly rate to £13.28 nationally. Employees working within the M25 in London will see an additional allowance of £1.27, resulting in an hourly wage of £14.55. This adjustment positions Tesco's rates above the £12.71 national living wage for workers over 21 years old.
Rival Supermarkets Announce Their Pay Increases
Other major supermarket chains have also unveiled pay rises in recent weeks. Sainsbury's is implementing a 5% increase this month, bringing national pay to £13.23 per hour and London pay to £14.54. Lidl has raised entry-level rates to £13.45 nationally and £14.80 in London.
Aldi is poised to become the highest-paying supermarket among its peers, with plans to hike pay for store assistants to £13.50 per hour nationally and £14.88 in London starting in April. This positions Aldi at the top of the pay league table for 2026.
Leadership and Union Perspectives
Ashwin Prasad, Tesco UK's chief executive, emphasised the importance of this investment, stating: "Our colleagues play a vital role in delivering for our customers every single day. I'm pleased we're able to announce this pay deal which reflects our deep appreciation for everything they do and represents another meaningful investment in colleague pay."
In addition to the pay rise, Tesco revealed plans to introduce a new domestic abuse policy later this year, which will include up to three days of paid leave for affected workers. Daniel Adams, national officer for the trade union Usdaw, welcomed both developments, noting that the pay increase "extends the gap between the Tesco rates of pay and the national living wage" and praising the domestic abuse policy as a pioneering step that could make a "huge difference for those affected."
UK Supermarket Pay Comparison Table for 2026
The following table provides a clear overview of pay rates across major UK supermarkets, based on announced increases for 2026:
- Aldi: National Pay - £13.50/hr, Inside M25 Pay - £14.88/hr, Effective From - April 2026
- Lidl: National Pay - £13.45/hr, Inside M25 Pay - £14.80/hr, Effective From - March 2026
- M&S: National Pay - £13.41/hr, Inside M25 Pay - £14.74/hr, Effective From - April 2026
- Tesco: National Pay - £13.28/hr, Inside M25 Pay - £14.55/hr, Effective From - March 2026
- Waitrose: National Pay - £13.25/hr, Inside M25 Pay - £14.80/hr, Effective From - April 2026
- Sainsbury's: National Pay - £13.23/hr, Inside M25 Pay - £14.54/hr, Effective From - March 2026
- Co-op: National Pay - £12.60/hr, Inside M25 Pay - £13.85/hr, Effective From - August 2025
- Asda: National Pay - £12.60/hr, Inside M25 Pay - £13.82/hr, Effective From - October 2025
- Morrisons: National Pay - £12.21/hr, Inside M25 Pay - £13.06/hr, Effective From - April 2025
- Iceland: National Pay - £12.37/hr, Inside M25 Pay - £13.50/hr (both rates for over 21s)
This comprehensive comparison reveals a competitive landscape, with Aldi leading in pay rates, followed closely by Lidl and M&S. The data underscores the ongoing efforts by supermarkets to attract and retain staff through improved remuneration, particularly in light of rising living costs and new statutory wage requirements.
