Retail group Sainsbury’s has announced that it will increase hourly pay by 5% in March 2026, bringing base wages to £13.23 per hour across most of the UK and £14.54 in London – an above-inflation bump the company is positioning as “sector-leading.”
For full-time hourly employees, the raise translates to more than £1,200 extra per year before benefits, the group said in an accompanying statement this week.
The move comes as the supermarket chain reports six consecutive Christmas periods of grocery market share growth, which CEO Simon Roberts directly credited to staff performance.
“Our colleagues are at the heart of our business. Their hard work, dedication and commitment have driven our strong momentum and helped us win grocery market share growth for the sixth consecutive Christmas period,” he said.
“I’m delighted to share that we will be raising pay for our hourly-paid colleagues by five per cent this year. This increase reflects our commitment to rewarding our colleagues for their exceptional service and productivity.”
The wage increase continues an aggressive pay push at Sainsbury’s. The company has raised hourly compensation by 42% over the past five years, outpacing inflation and putting pressure on competitors in the tight UK labour market.
Beyond base pay, Sainsbury’s hourly workers receive free meals during shifts, pension contributions, share-save options, and employee discounts the company values at over £600 annually for someone spending £80 per week on groceries.
The latest pay increase has been welcomed by unions.
“Usdaw has a longstanding and valued relationship with Sainsbury’s, and we welcome today’s announcement of an above-inflation pay rise,” said Joanne Thomas (Usdaw General Secretary).
“Our members are key workers in their communities and crucial to the success of the business. It is only right they are fairly rewarded for their hard work, a case that Usdaw has consistently made in pay talks with the company.”
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