The John Lewis Partnership, Britain's largest employee‑owned business, has today became the latest major UK retailer to lift store staff pay by more than inflation, following similar moves from Sainsbury's, Lidl GB and Aldi UK.
The Bank of England is monitoring wage settlements closely as it assesses whether inflation pressures will allow it to lower interest rates further.
Official data published earlier this week 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.
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 outside of London and £14.80 pounds within the city.
Britain's headline inflation rate was 3.4% in December.
The partnership's pay increase, which translates to an additional £1,600 a year for a typical full-time worker, represents an investment of £108m.
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.
The UK's government-mandated main minimum wage will rise by 4.1% to £12.71 an hour in April, despite complaints from some employers that this will push up prices.
