UK retailer Marks & Spencer is investing £95 million (€113.9 million) in salary hikes for retail workers, effective 1 April 2025.
The latest investment, which the retailer says is its biggest, is the third consecutive increase since Stuart Machin became CEO in 2022.
Approximately 50,000 UK customer assistants at Marks & Spencer's will receive a 5% increase compared to last year from £12 to £12.60 per hour.
This figure also marks a 26% increase since 2022, or double the rate of inflation over the same period (13.5%).
For customer assistants working in London, the hourly rate will increase by 5.3% from £13.15 to £13.85.
UK team support managers, will see the hourly rate increase from £13.05 to £13.65, while for those in London, it will increase from £14.20 to £14.90.
'Significant Cost Headwinds'
Stuart Machin, M&S chief executive, stated, “Following the government’s recent increases in tax and national insurance contributions, it’s no secret that M&S and indeed the entire retail sector has some significant cost headwinds to face in the new financial year.
“However, I have always believed that we should not allow these headwinds to impact our hourly paid colleagues, which is why today, for the third year in a row, we are making a record investment in our retail pay offer. This means we have now invested almost £300 million (€359.7 million) in our pay over the past three years, well above the rate of inflation, in addition to our market leading discount and pension offer for colleagues.”
In 2024, M&S invested £89 million (€106.7 million) in its UK retail salaries and a further £5 million (€6 million) annual investment to enhance its maternity, paternity, and adoption policies.
The 2025 investment means that since 2022, M&S has invested more than £285 million (€341.7 million) in its retail pay package.
It also means that every UK store colleague will continue to be paid the real living wage as their base pay, with M&S’s range of benefits – such as its 20% colleague discount, which when combined could be worth up to £15.40 per hour.
