British clothing and food retailer Marks & Spencer (MKS.L) said on Tuesday it would give around 40,000 store workers a 10.1% pay increase from April 1, a move that reflects the rise in the government-mandated minimum wage.
M&S said customer assistants will see their pay rise from 10.90 pounds ($13.83) an hour to 12 pounds an hour - ahead of the government's national living wage, which will increase by 9.8% to 11.44 pounds an hour, taking effect from April.
The pay rise will be noted by the Bank of England, which is keeping a close eye on wage settlements as it assesses the direction of interest rates. It fears rapid wage growth could add more inflationary pressure across the economy.
M&S said customer assistants working in London will see their pay rise from 12.05 pounds to 13.15 pounds an hour.
So-called team support managers will see their hourly rate increase from 12.20 pounds to 13.05 pounds, or from 13.35 pounds to 14.20 pounds in London.
M&S, which last month reported better-than-expected trading, said the investment in pay would cost it 89 million pounds, while a further 5 million pounds would be invested in improved maternity, paternity and adoption policies.
Other retailers, including Sainsbury's (SBRY.L), Amazon (AMZN.O), Aldi, Lidl and Costa Coffee have also announced pay rises for 2024.
($1 = 0.7883 pounds)
