Around 65,000 employees at John Lewis are set to receive a significant 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 a £1,600 raise per year for full-time workers. The staff, referred to as partners due to the employee-owned nature of the business, will benefit from this raise.
Although there has been no confirmation on whether the partners will receive a bonus this year, the partnership’s chair, Jason Tarry, stated their commitment to providing a bonus as soon as feasible. The decision regarding the bonus will be made by the Board in March. Under the leadership of Jason Tarry and managing director Peter Ruis, John Lewis has been working on revitalizing its business following recent financial setbacks.
The pay rise announcement is separate from the bonus decision and will see 99.6% of partners enjoying a total increase of £108 million. Starting April 1, employees working on the shop floor at John Lewis and Waitrose will see a 6.9% raise, with minimum hourly rates reaching £13.25 nationwide and £14.80 in stores within the M25.
For partners who acquire enhanced skills and take on specialized roles, hourly pay rates will rise to £14.31, increasing to £15.98 within the M25. These increments partly align with the rise in the statutory National Living Wage scheduled for April, where workers aged 21 and above will receive a 4.1% increase to £12.71 per hour.
Helen Webb, the chief people officer at the John Lewis Partnership, emphasized the importance of their partners and the significant investment of £108 million to increase their earnings consistently. This pay increase reflects the ongoing commitment to partner remuneration seen in previous years, ensuring that the hard work of partners is rewarded through monthly pay adjustments as the Partnership continues to invest in its future.
In addition to the salary raise, employees at the Partnership also benefit from discounts at John Lewis and Waitrose, a substantial pension contribution of up to 12%, discounts at affiliated hotels across the UK, financial support for personal development and leisure activities, subsidized meals, and various health and well-being benefits, including options for physiotherapy and counseling referrals.
Earlier in September, the Partnership reported losses nearly tripling to £88 million for the six months ending in July, citing restructuring costs and new tax and regulatory expenses. The group operates 36 department stores and over 300 Waitrose supermarkets.