Around 65,000 employees at John Lewis are set to receive a substantial pay increase in April. The John Lewis Partnership, which includes department stores and Waitrose supermarkets, announced that shop floor wages will go up by nearly 7%, equivalent to £1,600 per year for full-time workers. Employees at the renowned retailer are referred to as partners since the company is owned by its staff.
There is uncertainty regarding whether the workers will receive a partner bonus this year, as none has been given since 2022. Jason Tarry, the chair of the partnership, expressed the commitment to provide a bonus at the earliest opportunity. The decision on the bonus will be made by the Board in March. Under the leadership of former Tesco executive Mr. Tarry and managing director Peter Ruis, John Lewis has been striving to rejuvenate its business following significant losses in recent years.
John Lewis stated that 99.6% of its partners will benefit from the pay raise, totaling £108 million. Starting April 1, shop floor employees at John Lewis and Waitrose will see a 6.9% salary increase, with minimum hourly rates climbing to £13.25 nationwide and £14.80 in stores within the M25 area.
For partners acquiring enhanced skills and taking on specialized roles, pay rates will rise to £14.31 per hour, reaching £15.98 within the M25. These increases partly reflect the higher statutory National Living Wage, which will increase by 4.1% to £12.71 per hour for workers aged 21 and over from April onwards.
Helen Webb, the chief people officer at the John Lewis Partnership, emphasized the importance of their partners and the £108 million investment in increasing their earnings consistently. This pay raise underscores the ongoing dedication to partner salaries, aligning with previous years and reinforcing the recognition of their hard work through monthly pay enhancements.
In addition to the base pay raise, employees at the Partnership enjoy discounts at John Lewis and Waitrose. The company also offers benefits such as up to a 12% pension contribution, discounted rates at their network of UK hotels, financial support for personal development and leisure activities, subsidized meals, and a comprehensive health and wellbeing package including options for physiotherapy and counseling referrals.
In September, the Partnership reported a nearly tripled loss of £88 million for the six months ending in July, attributing it to restructuring costs and new tax and regulatory expenses. The group operates 36 department stores and over 300 Waitrose supermarkets.