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 almost 7%, equivalent to £1,600 annually for full-time staff. Employees at the renowned retailer are referred to as partners due to the unique ownership structure of the business.
Although a decision on this year’s partner bonus is pending, with none awarded since 2022, Jason Tarry, the chair of the partnership, expressed the organization’s commitment to providing a bonus at the earliest opportunity. The pay rise announcement is separate from the bonus decision, which 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 revitalize its performance following significant losses in recent times.
John Lewis reported that 99.6% of its partners will benefit from the pay increase, totaling £108 million. Starting April 1, shop floor workers at John Lewis and Waitrose will see a 6.9% raise, with minimum hourly rates increasing to £13.25 nationwide and £14.80 within the M25 area.
For partners who acquire specialized skills and take on distinct roles, pay rates will rise to £14.31 per hour, reaching £15.98 within the M25 region. These adjustments partly align with the higher statutory National Living Wage, which will see a 4.1% increase to £12.71 per hour for workers aged 21 and above starting in April.
Helen Webb, the chief people officer at the John Lewis Partnership, emphasized the importance of supporting the company’s partners. She highlighted the £108 million investment in boosting partner earnings consistently over time, reflecting the organization’s ongoing dedication to partner compensation.
Besides the wage increase, Partnership employees enjoy discounts at John Lewis and Waitrose, up to a 12% pension contribution, discounted rates at affiliated UK hotels, financial support for personal development and leisure activities, subsidized meals, and diverse health and wellness benefits including access to physiotherapy and counseling services.
In September, the Partnership disclosed a nearly tripling of losses to £88 million for the six months ending in July, attributing the setback to restructuring expenses and new tax and regulatory fees. With 36 department stores and over 300 Waitrose supermarkets under its operation, the group continues to navigate challenges while investing in its future growth.