LONDON, Feb 18 (Reuters) - The John Lewis Partnership, Britain's largest employee‑owned business, on Wednesday became the latest major retailer to lift store staff pay by more than inflation,
John Lewis Raises Employee Pay Above Inflation, Following Retail Trends
John Lewis Pay Increase Overview
LONDON, Feb 18 (Reuters) - The John Lewis Partnership, Britain's largest employee‑owned business, on Wednesday became the latest major retailer to lift store staff pay by more than inflation, following similar moves from Sainsbury's, Lidl GB and Aldi UK.
Details of the Pay Raise
The Bank of England is monitoring wage settlements closely as it assesses whether inflation pressures will allow it to lower interest rates further.
Comparison with Other Retailers
Official data published on Tuesday showed Britain's jobless rate rose to its highest in more than a decade outside the pandemic period and wage growth slowed, bolstering investor bets on a UK interest rate cut next month.
Impact on Minimum Wage
PARTNERSHIP RAISES PAY BY 6.9%
The John Lewis Partnership, which runs John Lewis department stores and upmarket grocer Waitrose, employing 65,000, said that from April 1 its shop floor workers will receive a 6.9% increase.
Minimum hourly rates will rise to 13.25 pounds ($17.89) outside of London and 14.80 pounds within the capital.
Britain's headline inflation rate was 3.4% in December.
The partnership's pay increase, which translates to an additional 1,600 pounds a year for a typical full-time worker, represents an investment of 108 million pounds.
Historically, the partnership has also paid its workers an annual bonus, though it has not paid one since 2022.
Last month, Sainsbury's announced a 5% rise for its workers, taking the increase to 42% over the last five years.
Britain's government-mandated main minimum wage will rise by 4.1% to 12.71 pounds an hour in April, despite complaints from some employers that this will push up prices.
($1 = 0.7406 pounds)
(Reporting by James Davey; Editing by Jan Harvey)
