Asda is implementing a significant pay increase for all its store-based workers starting from July 5, 2026. The supermarket chain will raise the hourly rate to £13.10 for employees outside the M25 motorway and to £14.35 for those working within the M25. This change is expected to affect approximately 110,000 hourly-paid retail colleagues across the UK.
Second Phase of Two-Step Pay Uplift
The July increase represents the second phase of a two-step pay uplift announced earlier this year. On April 1, 2026, Asda had already boosted wages for workers outside the M25 from £12.60 to £12.71 per hour, while those inside the M25 saw their pay rise from £13.82 to £13.93. The combined increases amount to a 4% above-inflation pay rise for hourly-paid staff, representing an £80 million investment by the retailer.
James Goodman, chief people officer at Asda, commented on the pay award: "I'm pleased we've been able to give them an above-inflation pay award and invest in this way. I'd also like to thank them for their continued hard work and commitment to making Asda better every day."
Industry-Wide Pay Rises
Asda is not alone in boosting worker pay. Other major supermarkets have also implemented wage increases this year. Sainsbury's introduced a 5% pay rise for hourly paid workers in March, raising its national hourly rate to £13.23 and to £14.54 for London-based colleagues. Lidl increased its entry-level pay to £13.45 per hour nationwide from March 1, with pay rising to £14.45 based on length of service. For London employees, Lidl's starter pay increased from £14.35 to £14.80, reaching £15.30 with service. Aldi has also implemented two pay rises this year, with starting rates now at £13.50 nationally and £14.88 inside the M25.
Other retailers including Marks & Spencer, John Lewis, and Waitrose have also announced pay rises for staff earlier in 2026, reflecting a broader trend of wage increases in the retail sector.
