Morrisons increase staff pay above government’s living wage

Bradford-based supermarket chain Morrisons is the UK’s latest retailer to introduce a pay rise for its 90,000 shop floor staff.

Starting from March next year, Morrisons will increase its hourly wage to £8.20 from a previous minimum of £6.83 to staff of all ages. This is above the compulsory “national living wage” that the government will introduce next year.

In July the government announced that Britain’s hourly minimum wage will rise to £7.20 for workers over the age of 25, a stipulation that will be put into place in April 2016.

Morrisons’ decision to increase the hourly wage, which makes it the its highest payer of the UK’s four biggest supermarkets, will cost around £40m.

David Potts, chief executive of Morrisons, said: “We have been listening to our colleagues who told us they want their pay to be more competitive and simpler. By paying a significantly higher hourly rate, we are recognising the contribution of our excellent staff, who are so important to the revival of Morrisons.”

This announcement follows on from German discounter Lidl taking advice from the Living Wage Foundation, agreeing to pay a minimum of £8.20 per hour to 9,000 staff members across England, Scotland and Wales, with that rate rising to £9.35 an hour in its London stores - starting from October.

Gill Owen, from the Living Wage Foundation, added: “This is wonderful news from Morrisons. Lidl’s announcement has prompted a review of pay practices and it shows consumers are beginning to recognise that the living wage is an important mark of a responsible business. We hope more will follow in Morrisons’ footsteps.”

Sainsbury’s and Starbucks have also recently announced pay rises for shop floor staff.