Morrisons Employee Wage Increase: 91.87% Vote Approved

Morrisons has confirmed a major employee wage increase for 2026, with Customer Assistant pay rising from £12.71 to £13.11 per hour through three separate increases agreed with USDAW. The changes place Morrisons among several major UK supermarkets adopting higher hourly wage structures as competition for retail staff continues to grow.

The agreement, approved by 91.87% of voting employees, also includes one-off payments for eligible hourly-paid workers. The announcement reflects wider retail industry pressure caused by the National Living Wage increase, inflation, and staff retention challenges.

Key Takeaways

• Morrisons pay will rise to £13.11 per hour by October 2026
• The increase will happen in three stages across the year
• Eligible workers will receive one-off payments of £25–£175
• USDAW negotiated the agreement with Morrisons
• Other retailers including Tesco, Aldi, Lidl, and Sainsbury’s have also increased wages

Jodie Keating, Group People Director at Morrisons, said:

“We’re pleased that we can now implement the pay proposal and increase pay for our colleagues to reward them for the contribution they make to our business. I would like to thank all our colleagues for everything they continue to do for Morrisons.”

The announcement follows wider wage increases across the UK retail market after the National Living Wage rose earlier in 2026.

Why Is Morrisons Increasing Employee Wages in 2026?

Morrisons’ latest wage increase reflects broader changes taking place across the UK retail industry. Rising living costs, government wage legislation, and growing competition between supermarkets have all contributed to higher employee pay expectations.

The retailer also faces pressure to retain experienced staff while continuing to attract new workers in a highly competitive labour market.

How Has the National Living Wage Influenced Morrisons Pay Decisions?

The National Living Wage increased to £12.71 per hour for workers aged 21 and over in April 2026. That represented a 50p increase from the previous rate and forced many retailers to review their pay structures.

Morrisons had already adjusted its Customer Assistant pay to match the updated legal minimum earlier in the year. The latest agreement pushes wages beyond that threshold.

For many supermarkets, increasing pay above the minimum wage helps improve recruitment and employee satisfaction while reducing staff turnover.

Why Are UK Supermarkets Competing on Staff Pay?

The UK supermarket industry has entered a period often described as the “£13 rule,” where several major chains are increasing hourly wages to around or above £13.

Retailers are competing for workers because:

• Labour shortages continue to affect retail operations
• Employees increasingly compare pay between supermarkets
• Inflation and household costs remain high

Aldi, Lidl, Tesco, Primark, M&S, and Sainsbury’s have all announced higher hourly rates during 2026.

Industry analysts believe supermarkets are using wage increases not only to support workers but also to strengthen their reputation as employers.

What Role Did USDAW Play in the Morrisons Pay Agreement?

The Union of Shop, Distributive and Allied Workers (USDAW) played a central role in negotiating the pay agreement with Morrisons management.

The union presented the proposal to members, who later voted overwhelmingly in favour of implementation. Collective bargaining remains an important part of wage negotiations across large UK retailers.

The agreement also includes one-off payments for eligible hourly-paid colleagues ranging from £25 to £175 depending on contracted hours.

Jodie Keating, Group People Director at Morrisons, said:

“We’re pleased that we can now implement the pay proposal and increase pay for our colleagues to reward them for the contribution they make to our business.”

How Much Will Morrisons Employees Be Paid After the Wage Increase?

The Morrisons employee wage increase will be introduced gradually across three separate phases during 2026. The changes apply mainly to Customer Assistants and other hourly-paid colleagues covered under the USDAW agreement.

Before the latest increase, Customer Assistants earned £12.71 per hour after the National Living Wage adjustment earlier in the year.

Effective Date	Customer Assistant Pay Rate	Increase Amount
Before March 2026	£12.71	—
March 2026	£12.81	+10p
July 2026	£13.00	+19p
October 2026	£13.11	+11p

Other established hourly-paid roles covered by the agreement will receive:

• A 10p increase from March
• A 19p increase from July
• An additional 11p increase from October

Morrisons also confirmed that eligible hourly-paid colleagues will receive a one-off payment between £25 and £175 based on contractual working hours.

The phased approach allows the retailer to spread wage increases across the year while still keeping pace with rival supermarkets.

For a full-time employee, the rise to £13.11 could result in several hundred pounds in additional annual earnings compared with previous pay levels.

How Does the Morrisons Employee Wage Increase Compare With Other UK Supermarkets?

Which Retailers Have Adopted the “£13 Rule”?

Several major UK retailers have increased hourly pay above £13 during 2026. The trend has become widely known as the “£13 rule” within the retail sector.

Primark announced that customer assistants across England, Scotland, and Wales would receive at least £13 per hour. Aldi and Lidl have gone even further in some locations, particularly London.

The recent Tesco pay rise has also reinforced this wider supermarket wage trend, showing how major retailers are responding to rising living costs, labour shortages, and growing employee expectations.

The broader movement highlights how UK supermarkets are increasingly competing not just on prices for shoppers, but also on pay and benefits for workers.

How Do Morrisons Pay Rates Compare With Tesco, Aldi, Lidl, and Sainsbury’s?

Supermarket	National Hourly Pay	London Hourly Pay
Morrisons	£13.11	Not specified
Tesco	Around £13.35	Around £14.71
Aldi	£13.50	£14.88
Lidl	£13.45 rising to £14.45	£14.80 rising to £15.30
Sainsbury’s	£14.54	Not specified
M&S	£13.41	£14.74

While Morrisons remains competitive, some rivals currently offer slightly higher hourly rates nationally.

Is Morrisons Still Competitive in the UK Retail Job Market?

Despite strong competition, Morrisons continues to position itself as a competitive employer through staged wage increases and additional payments.

The supermarket’s focus on structured pay progression may help improve employee retention over time. Analysts also note that benefits, scheduling flexibility, and workplace culture continue to influence job decisions alongside hourly wages.

What Does the Morrisons Pay Rise Mean for Employees and the Retail Industry?

For many workers, the Morrisons pay rise provides additional financial support during a period of high living costs across the UK. Even relatively small hourly increases can significantly affect monthly household budgets for full-time retail employees.

The agreement may also improve staff morale and strengthen employee retention. A worker completing 37.5 hours weekly could earn noticeably more annually once the final increase takes effect.

At an industry level, the announcement adds pressure on smaller retailers that may struggle to match rising supermarket wages. Some analysts believe larger chains are increasingly using pay improvements to attract experienced workers from competitors.

Jodie Keating highlighted this employee-focused approach, stating:

“I would like to thank all our colleagues for everything they continue to do for Morrisons.”

The wider retail sector is likely to continue monitoring wage competition closely throughout 2026.

Could Higher Supermarket Wages Affect UK Consumer Prices?

Higher supermarket wages may eventually contribute to increased operational costs for retailers. Labour is one of the largest expenses within supermarket businesses, especially for chains employing thousands of staff nationwide.

Some analysts believe retailers could offset these costs through efficiency improvements, automation, or selective price adjustments on products. However, there is currently no direct evidence that Morrisons’ wage increase alone will lead to immediate grocery price rises.

Industry experts also note that supermarkets remain highly competitive on pricing, making it difficult to pass all additional labour costs directly to consumers.

At the same time, supporters of higher wages argue better-paid workers can improve customer service, productivity, and employee retention, which may help businesses maintain long-term stability.

The debate continues across the retail industry as supermarkets balance fair pay with affordability for shoppers.

What Are Experts and Retail Analysts Saying About Supermarket Wage Increases?

Retail analysts view the Morrisons employee wage increase as part of a long-term shift in UK supermarket pay structures. Many experts believe wage competition between retailers is unlikely to slow in the near future.

The combination of labour shortages, inflation, and rising living costs has increased pressure on employers to improve compensation packages.

Several analysts also argue that supermarkets are moving beyond minimum legal requirements to strengthen recruitment efforts and reduce employee turnover.

At the same time, some business experts warn that continued wage growth could place pressure on smaller retailers with tighter operating margins.

The wider industry trend suggests hourly supermarket pay above £13 may become increasingly common across the UK.

Morrisons’ agreement with USDAW is also being viewed positively by labour groups because of the strong employee approval vote and phased implementation process.

The retail sector is expected to continue monitoring competitor wage announcements closely throughout 2026.

What Can UK Workers Learn From the Morrisons Wage Increase Announcement?

The Morrisons employee wage increase shows how quickly UK retail pay standards are changing. Workers are now comparing wages, benefits, and working conditions more carefully before choosing employers. The agreement also highlights the growing role of unions such as USDAW in wage negotiations.

Key lessons for workers include:

• Monitoring annual pay reviews
• Comparing supermarket wage structures
• Understanding National Living Wage changes
• Recognising the impact of union negotiations
• Looking beyond hourly pay at bonuses and benefits

The Morrisons deal may also encourage other UK retailers to review employee wages throughout 2026.

Conclusion

The Morrisons employee wage increase reflects the growing shift in UK supermarket pay standards. Under the USDAW agreement, Customer Assistant wages will rise from £12.71 to £13.11 by October 2026, alongside one-off payments for eligible staff.

The move mirrors wider retail industry trends as supermarkets compete to attract and retain workers amid rising living costs and labour pressures.

Jodie Keating, Group People Director at Morrisons, said:

“We’re pleased that we can now implement the pay proposal and increase pay for our colleagues to reward them for the contribution they make to our business.”

FAQs

When will the Morrisons employee wage increase take effect?

The Morrisons pay increase will be introduced in three stages during 2026. The final increase to £13.11 per hour for Customer Assistants will take effect in October 2026.

How much will Morrisons Customer Assistants earn in 2026?

Customer Assistants at Morrisons will earn £13.11 per hour by October 2026. The increase follows earlier rises to £12.81 in March and £13.00 in July.

Will all Morrisons employees receive the same pay rise?

No, different hourly-paid roles covered under the USDAW agreement will receive varying increases. Customer Assistants will receive the highest confirmed hourly rate under the agreement.

What is the one-off payment announced by Morrisons?

Morrisons confirmed that eligible hourly-paid colleagues will receive a one-off payment ranging from £25 to £175. The payment amount depends on each employee’s contractual working hours.

How does Morrisons pay compare with other supermarkets?

Morrisons remains competitive within the UK retail sector, although some supermarkets currently offer slightly higher hourly rates. Aldi, Lidl, Tesco, and Sainsbury’s have also announced significant wage increases during 2026.

Why are UK supermarkets increasing employee wages?

Supermarkets are increasing wages because of higher living costs, labour shortages, and competition for experienced workers. The National Living Wage increase has also pushed retailers to review pay structures.

Does the Morrisons wage increase apply to part-time workers?

Yes, eligible part-time employees covered by the USDAW agreement will also benefit from the wage increases. One-off payments will vary depending on contracted working hours.