Around 65,000 employees of the John Lewis Partnership are set to receive a substantial pay increase above the current inflation rate starting in April. The company, which includes both John Lewis department stores and Waitrose supermarkets, announced that shop floor wages will go up by nearly 7%, equivalent to £1,600 per year for full-time staff. The employees at John Lewis are referred to as partners as the business is owned by them.
While the pay rise has been confirmed, there is uncertainty surrounding the partner bonus for this year, as none has been issued since 2022. Jason Tarry, the chair of the partnership, stated their commitment to providing a bonus as soon as possible. The decision on the bonus will be made by the Board in March.
The pay hike announcement, totaling £108 million and benefiting 99.6% of partners, is independent of the bonus decision. Starting April 1, shop floor workers at John Lewis and Waitrose will see a 6.9% increase, with minimum hourly rates set to rise to £13.25 nationwide and £14.80 for stores within the M25 area.
For partners who acquire specialized skills and take on specific roles, hourly rates will increase to £14.31, reaching £15.98 within the M25. These increments 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.
Helen Webb, the chief people officer at the John Lewis Partnership, emphasized the importance of investing in their employees, stating that the pay raise reflects their ongoing commitment to partner compensation. She highlighted the continuous investment in partner pay over the years to reward their hard work.
In addition to the salary increase, partners at the company receive discounts at John Lewis and Waitrose, up to a 12% pension contribution, subsidized personal development and leisure activities, discounted rates at affiliated hotels, subsidized meals, and a comprehensive health and wellbeing package that includes options for physiotherapy and counseling.
The latest financial report from the Partnership revealed a significant increase in losses for the six months ending in July, attributed to restructuring costs, new tax regulations, and other charges. Despite these challenges, the group operates 36 department stores and over 300 Waitrose supermarkets.