UK supermarket chain Morrisons will increase the minimum hourly rate of pay for its staff by 20 per cent a month ahead of the introduction of the UK government's National Living Wage next year.
More than 90,000 workers across all age brackets will receive a new hourly rate of £8.20, the UK-based grocer said in a statement Tuesday. The increase takes effect from March 2016 and Morrison said it will invest more than £40 million to fund it.
UK Chancellor of the Exchequer George Osborne is introducing a new minimum wage, that will start in April at £7.20 and rise to £9 an hour by 2020. The country’s current minimum wage is £6.50.
The announcement provided an additional concern for UK supermarkets, already struggling to contend with the growing popularity of German discounters Aldi and Lidl. Grocery stores are some of the country’s largest employers.
Morrisons increased pay rate will be accompanied by fewer staff benefits, a company representative said. Those benefits that remain will be simpler. The approach differs to rival Sainsbury's, which will be paying its employees a lower hourly rate, while keeping their benefits intact.
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