Tesco agrees three-year pay deal with staff worth 10%

Supermarket group Tesco has reached a three-year deal that will see staff pay increase by 10 per cent.

The retailer will increase wages by 6 per cent from April 1st last, of which 2.5 per cent will be backdated a further year to April 2021.

Another 4 per cent rise will come into play in April next year.

“I am pleased to be able to make this announcement for our colleagues at a challenging time for families with rising living costs,” said Tesco Ireland chief executive Natasha Adams.

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The company, which says it is Ireland’s largest private sector employer, said the pay award came on top of recently improved benefits for workers, including paid maternity, paternity and adoptive leave, and the introduction of a new pension plan. All told, it said, the pay and benefits package will cost it €40 million.

The announcement on Monday comes after 10 months of discussions with trade unions, including sessions at the Workplace Relations Commission and the Labour Court.