Around 65,000 employees at John Lewis will receive a substantial pay increase starting in April. The John Lewis Partnership, which includes both department stores and Waitrose supermarkets, disclosed that wages for frontline workers will surge by nearly 7%, equivalent to a £1,600 annual raise for full-time staff. The company refers to its employees as partners since they collectively own the business.
Although the partner bonus status for this year remains uncertain, with no bonuses granted since 2022, Jason Tarry, the partnership’s chair, expressed the commitment to granting bonuses at the earliest opportunity. The decision on bonuses 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 financial performance following significant losses in recent years.
John Lewis confirmed that 99.6% of its partners will benefit from the pay hike, amounting to a total of £108 million. Effective April 1, employees on the shop floors of John Lewis and Waitrose will see a 6.9% increase in their wages, with minimum hourly rates climbing to £13.25 across the UK and £14.80 within the M25 area.
For partners who acquire specialized skills and take on specific roles, pay rates will rise to £14.31 per hour, reaching £15.98 within the M25. These increments partly align with the higher statutory National Living Wage, set to rise by 4.1% to £12.71 per hour for workers aged 21 and over starting April.
Helen Webb, the chief people officer at the John Lewis Partnership, emphasized the significance of the £108 million investment in enhancing partner earnings consistently over time. She underscored the company’s enduring commitment to partner compensation, ensuring that the rewards for their dedication are integrated into their monthly pay.
In addition to the salary increase, partners at the Partnership are entitled to discounts at John Lewis and Waitrose. The company also offers perks like up to a 12% pension contribution, discounted rates at their network of hotels nationwide, financial support for personal development and leisure activities, subsidized meals, and a broad range of health and wellness benefits including options for physiotherapy and counseling referrals.
In a previous announcement in September, the Partnership reported a nearly tripled loss of £88 million for the six months ending in July. The increase in losses was attributed to restructuring expenses and new tax and regulatory charges. The group operates 36 department stores and over 300 Waitrose supermarkets.