UK clothing and food retailer Marks & Spencer said today it would give around 40,000 store workers a 10.1% pay increase from April 1, a move that reflects the rise in the UK government-mandated minimum wage.
M&S said customer assistants will see their pay rise from £10.90 an hour to £12 an hour - ahead of the UK government's national living wage, which will increase by 9.8% to £11.44 an hour, taking effect from April.
The pay rise will be noted by the Bank of England, which is keeping a close eye on wage settlements as it assesses the direction of interest rates. It fears rapid wage growth could add more inflationary pressure across the economy.
Worker wages in Britain have only recently begun outpacing inflation, which held steady at 4% in January, still double the central bank's target of 2%.
M&S said customer assistants working in London will see their pay rise from £12.05 to £13.15 an hour.
Team support managers will see their hourly rate increase from £12.20 to £13.05, or from £13.35 to £14.20 in London.
M&S, which last month reported better-than-expected trading, said the investment in pay would cost it £89m, while a further £5m would be invested in improved maternity, paternity and adoption policies.
Other retailers in the UK, including Sainsbury's, Amazon, Aldi, Lidl and Costa Coffee have also announced pay rises for 2024.
