Asda announces record £150m investment to become highest paying UK grocer

Asda is investing a record £150m in its retail pay offer to become the highest paying grocery retailer, boosting hourly pay for over 120,000 workers.

The proposal outlines an 8.4% increase in hourly wages for store colleagues, with rates poised to reach £12.04 from July 1st, surpassing the current National Living Wage.

This follows a 10% increase for hourly-paid retail roles during 2023, and a 28% total increase in retail pay since the acquisition of Asda by the Issa brothers and TDR Capital completed in 2021 – with a total investment of almost £415m.

The new proposed rates of pay will exceed the Government’s National Living Wage and the current Real Living Wage and London Living Wage recommended by the Living Wage Foundation, are set to apply to colleagues in Asda Retail and in Asda Express, subject to ballot.

Usdaw, the trade union that negotiates with Asda on retail pay in Northern Ireland and in Asda Express, is recommending members accept the rates in a ballot that closes on 15th March.

The outcome of the ballot together with confirmation of the pay rate increase for colleagues who have joined the business from former EG Group sites will be confirmed on 18 March.

Mohsin Issa, Asda’s Co-owner, said: “This record investment will see Asda become the highest paying grocery retailer in the UK, recognising the hard work of our store colleagues in serving customers every day. We want to be a company that people are proud to work for, which is why we are proposing increasing pay for retail and Express colleagues by more than 8% this year. As we celebrate our 1000th store opening, I want to thank all our colleagues for their commitment and dedication in bringing Asda’s great value fuel and groceries to more communities.”

Hayley Tatum, Chief People and Corporate Affairs Officer at Asda, said: “Asda’s continued investment in our people is reflective of the hard work and commitment of our colleagues in serving customers every day. Asda’s proposed new rates of pay not only exceed the current Real Living Wage but would make us the highest paying grocery retailer in the UK. As we celebrate the landmark opening of Asda’s 1,000th store, we are proud to announce this record investment in our colleagues.”

Jayne Allport – Usdaw National Officer said: “We are pleased to have negotiated a pay increase to £12.04, which takes the basic hourly rate above the real Living Wage and meets our demands of at least £12 per hour. This offer from the company will now go to a ballot of Usdaw members covered by our agreements in Northern Ireland and Asda Express, Usdaw is recommending that they accept. Retail staff are key workers in our communities, ensuring that the nation is fed; they deserve our respect and one of the best ways of showing that is with decent pay, particularly in a cost of living crisis.”