Last month, rival supermarket J Sainsbury PLC announced that it was increasing the pay of in-store members of staff of all ages to GBP7.36 an hour.
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In July the government said Britain’s hourly minimum wage will rise from April next year to £7.20 for those aged over 25, from £6.50 now, and to about £9.35 an hour by 2020.
The increase, which makes Morrisons the highest payer of the UK’s four biggest supermarkets, comes after German discounter Lidl agreed this month to sign up to the living wage campaign and pay 9,000 staff at least £8.20 an hour.
Morrisons chief executive David Potts said: “We have been listening to our colleagues who told us they want their pay to be more competitive and simpler”.
Tesco, which pays shop workers £7.39 an hour, said that its routine annual discussions about pay and benefits are taking place.
The increase will mean an investment by the company of £40 million and will take the hourly rate above the Living Wage Foundation rate.
The Foundation will announce a change in its recommended rates in November.
Morrisons increased pay rate will be accompanied by fewer staff benefits, a company representative said.
“It is a big step forward, shows that the company are prepared to invest in the staff to help grow the business and I hope that the deal is supported by our members in the ballot”.
Supplements, such as a premium for working on Sunday, will also be simplified.
Workers in retail and the hospitality sector are expected to benefit most from a lift in the minimum levels of pay, and a number of retailers have recently responded to the Chancellor’s move.
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Asda will pay a standard hourly rate of £7 an hour from 1 October, while at Aldi it is £8.15.
