Store employees will see their basic hourly pay go up by 5.3%, from £9.50 per hour to £10 per hour amid a rapidly increasing cost of living and in recognition of the “extraordinary work” they do for customers. 

In inner London, the hourly rate for workers will increase from £10.10 to £11.05, and from £9.75 to £10.50 for those living in outer London. The retailers’ drivers will also be given a pay rise, with Sainsbury’s Groceries Online drivers to receive £11.50 per hour while Argos Fast Track Delivery drivers will receive £11 per hour. 

Around 150,000 members of staff will benefit from the companies’ new pay rates, which go beyond the National Living Wage and the voluntary Real Living Wage. 

Chief executive Simon Roberts said: “To kick off the new year, I am pleased that one of the first things we are doing is investing in our colleagues and lifting our basic hourly rate of pay to £10.”

“We are making this significant investment to show our colleagues how much we value the brilliant job they do for our customers every day.”