Supermarket Asda is to increase hourly pay rates for its store-based employees in three phases as part of an £80 million investment.

Around 115,000 retail and express employees will receive a 4.7% increase across the three phases. Employees across the UK will see pay rates rise from £12.04 to £12.21 in April, to £12.45 in July and to £12.60 in October.

For staff at stores inside the M25, their pay will rise from £13.21 to £13.38 in April, to £13.62 in July and to £13.82 in October. The new rates were agreed with the union Usdaw.

Since it was acquired by its shareholder group in 2021, Asda has invested more than £500 million in retail pay and increased its hourly base rate by 35%, from £9.36 to £12.60.

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In addition, Asda has confirmed it will introduce new and enhanced family-friendly policies for all employees from July. These include increasing maternity and adoption leave from 12 weeks to 26 weeks and doubling paternity leave from two weeks to four weeks at full contractual pay.

It has also introduced two new policies, which include 26 weeks of paid leave for kinship carers who care for other children and two weeks of paid leave for those who experience pregnancy loss before 24 weeks.

Asda also previously announced an increase in its staff discount to 15% to help employees with extra savings.

Hayley Tatum, chief people officer at Asda, said: “We’re proud to have invested more than £500 million in retail pay over the last four years. Our employees are what makes Asda special, and this latest pay investment, plus an increased staff discount and enhanced family-friendly policies, recognises the key role they play in serving customers each day.”

Jayne Allport, national officer at Usdaw, added: “We are pleased to have secured an above inflation increase and be able match the real living wage for our members in Asda Express, Food services and Leon.

“The cost of living continues to be a key concern, so the business’ decision to respond in such a positive manner is welcome. Our members are key workers delivering essential services, it is only right they are fairly rewarded with a living wage.”

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