The supermarket giant will usher in the pay increase over two stages. Its minimum rate of pay will be upped from £8.42 to £9 per hour from September 1 this year.

Tesco’s lowest paid staff will receive a second pay rise on October 4, 2020, when the rate will increase again to £9.30.

The grocer is also permanently replacing its staff bonus plan in favour of the higher basic hourly rate. Tesco said this would provide “more certainty” around the take-home pay of hourly-paid workers.