Around 65,000 employees at John Lewis are set to receive a significant pay increase in April. The John Lewis Partnership, encompassing department stores and Waitrose supermarkets, announced that shop floor wages will go up by nearly 7%, equivalent to £1,600 annually for full-time workers. John Lewis employees, known as partners due to the employee-owned structure, will be the beneficiaries of this pay rise.
While the pay rise news is confirmed, there is uncertainty regarding whether there will be a partner bonus this year, as none has been issued since 2022. The partnership’s chair, Jason Tarry, expressed the commitment to providing a bonus at the earliest opportunity. The decision on the bonus will be made by the Board in March.
The pay increase announcement is separate from the bonus decision, with the bonus fate to be determined in March. Under the leadership of former Tesco executive Mr. Tarry and managing director Peter Ruis, John Lewis has been striving to revitalize its operations following substantial losses in recent years.
John Lewis indicated that 99.6% of partners will benefit from the pay rise, totaling £108 million. Effective April 1, shop floor employees at John Lewis and Waitrose will experience a 6.9% wage hike, with minimum hourly rates climbing to £13.25 across the UK and £14.80 in M25 stores.
Employees with enhanced skills and specialized roles will see pay rates increase to £14.31 per hour, rising to £15.98 within the M25. These increases partly align with the higher statutory National Living Wage starting in April, with a 4.1% rise to £12.71 per hour for workers aged 21 and over.
Helen Webb, chief people officer at the John Lewis Partnership, emphasized the importance of employees and stated that the £108 million investment aims to boost partner earnings consistently. This pay raise underscores the ongoing commitment to partner remuneration, in line with previous years, ensuring that hard work is duly rewarded through monthly pay increments.
Additionally, apart from the base pay, John Lewis Partnership employees enjoy discounts at John Lewis and Waitrose. The company also offers up to a 12% pension contribution, discounted rates at affiliated hotels nationwide, financial support for personal development and leisure activities, subsidized meals, and a comprehensive health and wellness package including options for physiotherapy and counseling referrals.
In September, the Partnership reported a nearly threefold increase in losses to £88 million for the six months ending in July. The surge in losses was attributed to restructuring costs and new tax and regulatory charges. The group operates 36 department stores and over 300 Waitrose supermarkets.