Marks & Spencer has today become the latest British retailer to again raise pay for store workers amid a cost-of-living crisis and a tight labour market.
With Britain's jobless rate at its lowest since 1974 the Bank of England is watching pay settlements closely as it mulls further rises in interest rates.
M&S said that from October 1 more than 40,000 workers will see their hourly pay increase to a minimum of £10.20.
The additional autumn pay review, a first for M&S, follows an initial pay increase in April to £10 an hour from £9.50.
Combined, this represents an annual raise of 7.4%. However, UK inflation was 9.9% in August.
The clothing and food retailer said its new package to support workers would cost it £15m.
It includes a one-off £250 M&S voucher for 4,500 salaried colleagues at pre-management levels in stores and support centres. Other staff benefits include free food and sanitary products.
Last week Sainsbury's, Britain's second largest grocer, raised staff pay for the first time outside of its annual pay review.
The John Lewis Partnership also said it would pay a one-off cost of living support payment of £500 for full-time employees.
