Supermarkets Urged to Align Employee Pay with Real Living Wage
Supermarkets across the UK are being prompted to adjust employee salaries to meet the real living wage. This appeal comes as several major grocery chains have stepped back from matching this salary benchmark amidst rising operational costs.
Call for Alignment with Real Living Wage
Investor advocacy group ShareAction is leading the charge, urging the country’s largest grocery retailers to reinstate pay in line with the real living wage. This standard is calculated based on the actual cost of living and is currently set at £13.45 per hour outside London, with a higher rate of £14.80 within the capital.
Recent Wage Adjustments in Supermarkets
Many retailers have recently announced pay increases ahead of the national minimum wage rise, which increased to £12.71 per hour for individuals aged 21 and older. However, only a few have committed to meeting the higher real living wage.
- M&S has moved away from offering wages in line with the real living wage.
- The Co-operative Group has also dropped its longstanding commitment to this wage standard, despite announcing a 3.5% pay increase effective April.
- Both Tesco and Sainsbury’s no longer align their employee pay with the real living wage, a practice they ceased in 2025.
- Aldi and Lidl remain the only major supermarkets to pay entry-level employees in accordance with the real living wage nationwide.
Comments from ShareAction
Louise Eldridge, a representative from ShareAction, expressed disappointment over supermarkets reducing their alignment with the real living wage. She emphasized that despite the significant pressures on retail firms, it is essential for them to pay wages that reflect living costs.
Company Reactions
In response to the critiques:
- Sainsbury’s reported a 5% increase in pay and noted a 42% wage rise over the past five years.
- A spokesperson from the Co-operative Group stated they have aligned their lowest pay rates with the real living wage but do not hold formal accreditation.
- M&S clarified that it has never formally committed to the real living wage standard.
- Tesco mentioned that their wages have risen by 43% in the last five years, alongside a competitive reward package for employees.
With the ongoing discussion surrounding worker compensation, ShareAction is set to focus on ensuring firms make firm commitments regarding employee pay in the upcoming annual meetings. Adopting the real living wage could help provide job security and improve employee morale in the retail sector.
