Around 65,000 employees at John Lewis are set to receive a substantial pay increase in April. The John Lewis Partnership, which encompasses both department stores and Waitrose supermarkets, announced that the shop floor wages will go up by almost 7%, equivalent to an annual raise of £1,600 for full-time staff. Employees at the renowned retailer are referred to as partners as the company is owned by its workforce.
Although the status of a partner bonus for this year remains uncertain, with none given out since 2022, Jason Tarry, the chair of the partnership, expressed the organization’s commitment to providing a bonus at the earliest opportunity. The decision regarding the bonus 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 rejuvenate its financial performance following significant losses in recent years.
John Lewis stated that 99.6% of its partners will benefit from the pay increase, totaling £108 million. Starting April 1, employees on the shop floor at John Lewis and Waitrose will see a 6.9% raise, with minimum hourly rates increasing to £13.25 nationwide, and £14.80 in stores located within the M25.
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. The pay increments partly reflect the rise in the statutory National Living Wage from April, where the rate for workers aged 21 and over will climb by 4.1% to £12.71 per hour.
Helen Webb, the chief people officer at the John Lewis Partnership, emphasized the importance of the workforce, stating that the £108 million investment aims to boost employees’ incomes consistently. She highlighted that this pay growth showcases the organization’s enduring dedication to partner remuneration, aligning with previous years’ practices.
In addition to the salary increase, Partnership employees also enjoy discounts at John Lewis and Waitrose. The company offers up to a 12% pension contribution, discounted rates at affiliated hotels across the UK, financial assistance of up to £275 for personal development and leisure activities like theater visits, subsidized meals, and a comprehensive health and wellness package that includes options for self-referral to physiotherapy and counseling.
In September, the Partnership disclosed a nearly tripled loss of £88 million for the six months ending in July. The upsurge in losses was attributed to restructuring expenses and new tax and regulatory fees. The group operates 36 department stores and over 300 Waitrose supermarkets.