Morrisons Employee Wage Increase: £13.11 Hourly Pay Now in Effect

The Morrisons employee wage increase for 2026 is now fully in effect, with the established hourly rate for Customer Assistants reaching £13.11 from Monday, 26 October 2026.

The increase follows a three-stage pay agreement negotiated with the Union of Shop, Distributive and Allied Workers (USDAW).

The agreement received 91.87% support from voting union members and covers eligible supermarket and manufacturing colleagues. It also includes a one-off payment of £25 to £175 for qualifying hourly-paid employees.

Morrisons has increased its Customer Assistant rate from £12.21 at the beginning of the year to £13.11, representing a 7.4% increase.

However, our analysis of the latest supermarket pay figures shows that Morrisons remains below several competitors, including Tesco, Sainsbury’s, Aldi and Lidl.

What Is the Morrisons Employee Wage Increase in 2026?

Morrisons Customer Assistants covered by the national USDAW agreement now receive an established hourly rate of £13.11.

The final increase took effect on Monday, 26 October 2026, following earlier adjustments in March and July.

According to the official Morrisons announcement published on 13 May 2026, the revised agreement introduced three separate increases rather than a single annual adjustment.

Effective Date	Customer Assistant Hourly Rate	Increase
Before 30 March 2026	£12.21	Previous rate
30 March 2026 – statutory adjustment	£12.71	+50p
30 March 2026 – negotiated rate	£12.81	+10p
20 July 2026	£13.00	+19p
26 October 2026	£13.11	+11p

The £12.71 adjustment was linked to the new National Living Wage, which legally took effect on 1 April 2026. Morrisons applied its corresponding adjustment from 30 March.

The final three negotiated increments total 40p above the £12.71 rate.

For other established hourly roles covered by the agreement, the corresponding increases were 10p, 19p and 11p. However, this does not mean all employees receive the same final hourly rate.

Morrisons’ official announcement confirming the 91.87% vote and three pay increases in 2026.

How Much Extra Will Morrisons Employees Earn in 2026?

The financial difference depends on an employee’s contracted hours and previous hourly rate.

We calculated the annual equivalent using 37.5 working hours per week over 52 weeks, excluding overtime, bonuses, tax and other deductions.

Comparison	Hourly Increase	Percentage Rise	Annual Gross Difference
£12.21 to £13.11	£0.90	7.37%	£1,755
£12.71 to £13.11	£0.40	3.15%	£780

At the current £13.11 rate, gross earnings are approximately:

Working Period	Gross Earnings
One hour	£13.11
20-hour week	£262.20
30-hour week	£393.30
37.5-hour week	£491.63
Average month at 37.5 hours	£2,130.38
Full year at 37.5 hours	£25,564.50

These figures represent annualised earnings at the current rate, not the actual total received throughout 2026, because the increases were introduced in stages.

Employees who worked fewer hours, took unpaid leave or joined during the year will have different earnings.

The distinction between gross and net pay is also important. Income Tax, National Insurance and pension contributions can reduce the amount deposited into an employee’s bank account.

Employees who notice unexpected deductions should check their PAYE details, particularly where changes to a tax code affect their take-home wages.

How Much Above the National Living Wage Does Morrisons Pay?

The UK’s National Living Wage increased from £12.21 to £12.71 on 1 April 2026 for workers aged 21 and over.

Morrisons’ current established Customer Assistant rate is therefore 40p per hour, or approximately 3.15%, above the statutory rate.

The official GOV.UK National Minimum Wage rates confirm the following amounts.

Worker Category	Statutory Hourly Minimum From April 2026
Aged 21 and over	£12.71
Aged 18–20	£10.85
Aged 16–17	£8.00
Eligible apprentices	£8.00

The Morrisons announcement does not separately establish the contractual rates for all under-21 employees. It would therefore be misleading to assume every younger worker automatically receives £13.11.

From a payroll compliance perspective, employers must ensure that working hours, unpaid time and deductions do not result in unlawful underpayment.

Our examination of HMRC wage and payroll checks also highlights why businesses must consider actual working time rather than advertised hourly rates alone.

 Official UK minimum wage rates for 2026, showing the £12.71 National Living Wage.

How Did USDAW Negotiate the Morrisons Pay Agreement?

The 2026 settlement followed a difficult negotiation period rather than immediate agreement between Morrisons and USDAW.

Earlier in the year, Morrisons faced criticism over its initial position on increases above the statutory minimum.

Union members rejected an earlier proposal described by USDAW as a “zero offer”.

Negotiations resumed on 25 March 2026, with representatives subsequently securing a revised agreement covering the 2025 and 2026 pay negotiations.

The improved proposal was then put to a member ballot, receiving 91.87% approval.

The first negotiated increase was backdated to 30 March because the revised agreement was approved after that date.

An USDAW spokesperson described the settlement as demonstrating:

“the power of solidarity and the benefit of collective bargaining”

This reflects an important distinction between statutory increases and collectively negotiated improvements.

The National Living Wage established the minimum Morrisons needed to pay eligible workers, while negotiations resulted in the additional increases above that minimum.

Morrisons Group People Director Jodie Keating also welcomed implementation of the agreement, saying:

“We’re pleased that we can now implement the pay proposal”

The negotiations show how staff representation can influence the structure and timing of pay settlements.

Backdated pay also features in other collectively negotiated agreements, including the Royal Fleet Auxiliary pay rise, although the employment arrangements and calculations differ.

Will Morrisons Employees Receive Backpay or a One-Off Payment?

The agreement includes two separate financial elements: the backdated March increase and a one-off payment for eligible hourly-paid colleagues.

Payment	Confirmed Details
March adjustment	First negotiated increase effective from 30 March 2026
Backdated pay	Eligible employees should receive the difference for qualifying hours
One-off payment	£25–£175
Payment calculation	Based on contractual hours
Eligibility	Qualifying hourly-paid employees covered by the agreement

Retail Week reported that the one-off payment was scheduled for 29 May 2026, although Morrisons’ public corporate announcement did not independently specify that payment date.

The publicly available announcement also does not provide a complete breakdown showing which contractual-hour bands qualify for each payment amount.

Employees should therefore check their payslips or request clarification from their people manager or USDAW representative rather than assuming a particular payment amount.

Where Does Morrisons Rank Among UK Supermarkets in October 2026?

Our comparison of published entry-level national hourly rates places Morrisons below six major competitors, including Tesco and Waitrose.

Supermarket	National Hourly Rate	London/M25 Rate
Aldi	£13.50	£14.88
Lidl	£13.45	£14.80
Marks & Spencer	£13.41	£14.74
Tesco	£13.28	£14.55
Waitrose	£13.25	£14.80
Sainsbury’s	£13.23	£14.54
Morrisons	£13.11	Not confirmed for 2026
Asda	£13.10	£14.35
Co-op	£13.04	Location-dependent

Comparison reflects published standard starting or established rates available by 30 October 2026. Rates can differ by job, location and length of service.

Morrisons pays 1p more per hour than Asda’s published national rate and 7p more than Co-op.

However, it remains 12p below Sainsbury’s, 17p below Tesco and 39p below Aldi.

Tesco’s own March announcement confirms £13.28 nationally and £14.55 in London. Sainsbury’s confirms £13.23 nationally and £14.54 in London.

Lidl’s national starting rate can rise to £14.45 with service, while Aldi’s can increase to £14.47 nationally.

Morrisons previously operated London weighting, including an 85p supplement announced in 2022. However, a confirmed 2026 London-specific rate was not established in the latest pay announcement.

Employees should verify their current location supplement directly rather than relying on the historical figure.

How Has Morrisons Employee Pay Changed Since 2021?

Morrisons’ pay history demonstrates how significantly supermarket wages have increased over the past five years.

In January 2021, Morrisons announced it would become the first major UK supermarket to guarantee at least £10 per hour for store colleagues from April.

The company increased its established rate to £10.20 in October 2022, alongside a London supplement that took the M25 minimum to £11.05.

Year	Published Customer Assistant Rate
April 2021	£10.00
October 2022	£10.20
Before March 2026	£12.21
March 2026	£12.81
July 2026	£13.00
October 2026	£13.11

The increase from £10 in 2021 to £13.11 in October 2026 represents approximately 31.1% nominal wage growth.

Nevertheless, nominal increases do not directly measure improvements in purchasing power.

Inflation, housing costs, transport expenses and tax deductions affect how much additional income employees can actually use.

Morrisons’ historical announcement establishing the £10 hourly pay milestone in 2021.

What Benefits Do Morrisons Employees Receive Beyond Hourly Pay?

Morrisons also provides benefits that contribute to the overall value of employment.

According to its published recruitment information, these include:

Employee Benefit	Published Arrangement
Colleague discount	15% on eligible Morrisons purchases, without a stated savings cap, subject to scheme rules
Family and friends discount	10%, with a reported annual savings cap of £1,000 per nominated person
Digital GP	Aviva Digital GP access, including eligible children up to age 16
Retail discounts	Access to offers from more than 1,500 retailers
Food at work	Subsidised meals or canteen facilities
Pension	Workplace pension scheme, subject to eligibility
Family support	Enhanced leave provisions for eligible employees

Published Morrisons materials have differed over the number of family or friend nominees permitted.

Current recruitment pages generally describe one additional discount card, so employees should check the applicable scheme terms.

For example, a colleague spending £80 weekly on eligible Morrisons shopping could save approximately £624 annually through a 15% discount, assuming the full discount applies throughout the year.

This is a calculated example rather than a guaranteed saving.

Aldi’s paid breaks are another factor when comparing total reward. Aldi stated in February 2026 that paid breaks were worth approximately £1,500 annually, replacing lower estimates reported in earlier years.

Consequently, comparing basic hourly wages alone can understate differences in total employment value.

 Morrisons employee benefits, including colleague discounts, healthcare and retailer rewards.

Why Has Morrisons Increased Its Investment in Employee Pay?

Morrisons faces the challenge of improving employee compensation while managing substantial operating costs.

During the earlier pay dispute, Morrisons said it had invested more than £100 million in hourly pay during the previous financial year, with a further £70 million associated with the next National Living Wage increase.

These figures should not be interpreted as the confirmed cost of the entire negotiated USDAW settlement.

The company also cited approximately £200 million in additional costs associated with earlier government tax and employment changes.

Higher employment costs can affect retailers through payroll expenditure, employer National Insurance contributions and pressure on operating margins.

However, improved wages can also support recruitment and reduce the costs associated with frequent employee turnover.

For smaller retailers, the relevant lesson is that wages must be assessed alongside scheduling, productivity, retention and legal compliance.

There is currently insufficient evidence to conclude that the October Morrisons pay increase independently caused higher grocery prices.

Frequently Asked Questions

What is Morrisons’ hourly pay in 2026?

The established Customer Assistant hourly rate is £13.11 from 26 October 2026 for employees covered by the relevant agreement.

Is the £13.11 Morrisons pay rate live now?

Yes. The final scheduled phase took effect on Monday, 26 October 2026.

How much above minimum wage is Morrisons?

The £13.11 rate is 40p, approximately 3.15%, above the £12.71 National Living Wage for workers aged 21 and over.

Will Morrisons employees receive backpay for March?

The first negotiated phase was backdated to 30 March 2026. Eligible employees should check their payslips for the applicable arrears.

Does the increase cover manufacturing and warehouse staff?

The agreement covers specified supermarket and manufacturing roles under the national USDAW agreement. Coverage of particular warehouse or distribution jobs requires confirmation.

Does Morrisons pay London weighting?

Morrisons has historically offered a London supplement, but its May 2026 announcement does not confirm a current London-specific hourly rate.

Are salaried managers and employees under 21 covered?

The announcement does not separately confirm the treatment of salaried managers or every age-related employment category. Individual contracts should be checked.

Which supermarkets currently pay more than Morrisons?

Published national starting rates are higher at Aldi, Lidl, Marks & Spencer, Tesco, Waitrose and Sainsbury’s.

How much is the Morrisons one-off payment?

Eligible hourly-paid employees qualify for between £25 and £175, depending on contractual hours. Exact individual amounts depend on the agreement’s eligibility rules.

Does the increase apply to part-time employees?

Eligible hourly-paid part-time colleagues covered by the agreement receive the applicable hourly increases. Their total earnings depend on hours worked.