The UK’s second-largest supermarket chain has revealed its 127,000 hourly-paid staff are to receive a pay boost earlier than planned to help with the cost of living.

Sainsbury’s said its supermarket and Argos workers outside London would get at least £11 an hour, up from £10.25, from February.

Those working in the capital would see their hourly wage rise from £11.30 to £11.95, the company said.

It marked the second increase since October – with employers keen to retain and attract staff in the tight labour market.

The announcement also confirmed a six-month extension of its free food offer for store and depot colleagues during their shifts.

Sainsbury’s said the latest pay rise would come at a cost of £185m – on top of the £20m it invested in October – making it the biggest investment in pay the company had ever made.

The annual pay review normally takes effect in March.

Food inflation ‘hit record high’ ahead of Christmas led by fresh produce as spend £1bn higher than 2021

Plans to privatise Channel 4 to be scrapped by Culture Secretary Michelle Donelan, reports suggest

Three more shops introduce charge for returns; 2023 cost of living payment dates outlined | Cost of living latest

Its statement said the decision to bring it in a month early was in reaction to the continuing cost of living difficulties and “the extraordinary hard work of colleagues”.

Industry data released earlier in the day by Kantar Worldpanel suggested that Sainsbury’s enjoyed a 6.2% rise in sales values during the festive season – just behind its main rival Asda.

Market leader Tesco, Kantar said, saw growth of 6%.

The pay increases meant that staff had been awarded a 10% rise over the course of the past 12 months, Sainsbury’s said.

The figure is almost in line with the rate of inflation – mostly driven by soaring energy costs in the wake of the war in Ukraine.

Many unions across the public and private sectors are seeking pay hikes in excess of the core consumer prices index (CPI) measure, currently at 10.7%, in favour of a retail prices index hike which is at 14%.

Thousands of rail workers and National Highways staff belonging to the PCS union are striking on Wednesday.

Related posts:

Borrowing falls as furlough spending eases – but still second highest on record News UK says ‘early stage’ discussions with BT Sport will not be pursued Krispy Kreme aiming for $4bn valuation in public listing Lloyds shuts 44 more branches with customers moving online Tech tycoon Lynch vows to fight US extradition in HP-Autonomy fraud case Drug wholesaler hit by MHRA suspension seeks funding injection Biden’s pick for Fed chair is finely balanced as removing Powell could spark Senate battle Branson to land fresh £400m funding injection for Virgin Atlantic Largest hike in food prices for over 40 years drives inflation back to double-digits Former Comet owner joins race for £400m Matalan takeover Gigantic conveyor will do work of one million lorries carrying material dug up for HS2 Billionaire boyhood fan and members of treble-winning squad – the potential contenders to buy Man Utd