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Asda to increase retail colleague pay rates by 10%

  • Asda invests a record £141m this year to increase hourly-pay for store colleagues by 10% 
  • New hourly pay rates exceed National Living Wage and Real Living Wage rates
  • Asda also freezes prices on 600 family favourite products to help customers manage rising living costs

February 17, 2023 10:40am
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Current hourly rateHourly rate from 2nd AprilHourly rate from 2nd July
National rate£10.10£11.00£11.11
Stores inside the M25£11.27£12.17£12.28

Asda has today announced a 10% pay increase for hourly-paid store colleagues, with rates rising to £11.00 per hour from April and £11.11 per hour from July.

The supermarket is investing a record £141m this year to boost hourly pay rates for more than 115,000 colleagues who work across its 633 stores. This follows an 8% pay increase for hourly-paid retail roles during 2022.

In addition, all eligible hourly-paid store colleagues who have been with Asda for more than three months will receive a bonus payment for 2022. This amount will be confirmed at the end of February and paid to colleagues the following month.

The new rates of pay, which exceed the Government’s National Living Wage and the Real Living Wage recommended by the Living Wage Foundation, were agreed with Usdaw, the trade union that holds the mandate to negotiate with Asda on retail pay in Northern Ireland. The new rates will also apply to retail colleagues across the UK.

Mohsin Issa, Asda’s Co-owner, said: “We appreciate the great job that our store colleagues do representing Asda while serving customers day in and day out. We know that rising living costs are affecting customers and colleagues alike and recognise we have a responsibility to support them during these challenging times. This is why we have made a record investment of £141m to increase pay for retail colleagues by 10% this year.”

To provide extra support for customers during the cost of living crisis and give them more control over their shopping budget, Asda is launching a new initiative to lock the prices on hundreds of popular branded and own label products, more than half of which are fresh meat, dairy, fruit and vegetable products. The campaign will run from 21st February to 31st May.

The supermarket has also stepped up its support for families with the launch of an exclusive partnership with Quaker Oats to offer children a free warm breakfast in any of its 205 cafes during the February half term holidays. The offer means that families are now able to access both a free children’s breakfast and a main meal for just £1 in all Asda cafes.

Last month, Asda announced its Kids’ £1 meals and over 60’s Winter Warmer £1 café deals would be extended until the end of March. Both offers have been hugely popular with customers and more than 1.1m meals have been served since the launch last July.

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