Around 65,000 employees at John Lewis are set to receive a substantial pay increase starting 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 a £1,600 raise annually for full-time workers. The employees at this renowned retailer are referred to as partners since they collectively own the business.
While the pay rise news is confirmed, there is uncertainty regarding the annual partner bonus for this year, as none has been distributed since 2022. Jason Tarry, the chair of the partnership, expressed the commitment to awarding a bonus as soon as feasible. The decision on the bonus will be made by the Board in March, independent of the recent pay increase announcement.
John Lewis revealed that nearly all partners, 99.6%, will benefit from the pay raise, totaling £108 million. Effective April 1, employees on the shop floor at John Lewis and Waitrose will enjoy a 6.9% raise, with minimum hourly rates climbing to £13.25 nationwide and £14.80 in M25 stores.
For partners who acquire specialized skills and take on specific roles, hourly rates will increase to £14.31, rising to £15.98 within the M25 area. These adjustments partly align with the rise in the statutory National Living Wage, which will increase by 4.1% 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 significance of investing in their workforce, stating that the £108 million increment is aimed at boosting partners’ monthly earnings continually. This pay hike underscores the ongoing dedication to partner remuneration, aligning with previous years’ practices.
Apart from the salary increase, employees at the Partnership enjoy various benefits, including discounts at John Lewis and Waitrose, up to a 12% pension contribution, discounted rates at affiliated hotels nationwide, financial support for personal growth and leisure activities, subsidized meals, and a comprehensive health and wellness package with options for self-referral to physiotherapy and counseling services.
In September, the Partnership reported a significant increase in losses for the six months ending in July, attributing the surge to restructuring costs, new tax implications, and regulatory charges. Operating 36 department stores and over 300 Waitrose supermarkets, the group remains focused on revitalizing its financial standing.