Asda to give 8.4% pay rise to 120,000 workers as supermarket becomes ‘highest paying grocery retailer’

Asda store in pictures

Asda opened its one thousandth store today

Jessica Sheldon

By Jessica Sheldon

Published: 01/03/2024

- 09:15

Updated: 01/03/2024

- 09:33

Asda announced the pay rise plans on the same day it opened its 1,000th store

Asda plans to give hundreds of thousands of employees an 8.4 per cent pay rise, taking the national hourly rate to more than £12 later this year.

The supermarket today announced proposals to invest a record £150million in its retail pay offer.

The current national rate is £11.11 per hour, and it's set to increase to £12.04 from July 1.

Stores inside the M25 currently pay £12.28 per hour, but this would rise to £13.21.

Asda employee and sign outside store

Asda is set to pay tens of thousands of employees more than £12 per hour


Asda increased the pay for hourly-paid retail roles by 10 per cent during 2023.

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

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

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 eight per cent 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.”

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.”

She added: "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.”

Last year, Aldi announced all store and warehouse colleagues would be paid at least £12 an hour nationally, and £13.55 within the M25, effective February 1, 2024.

Pay rates rise further for Store Assistants to £12.95 nationally and £13.85 within the M25, based on length of service.

In January, Lidl GB announced entry level rates would rise from £11.40 to £12 outside of the M25, increasing to £13 with length of service, from March 1.

Staff members working within the M25 will see a pay rise from £12.85 to £13.55, increasing to £13.85 over time.

You may like