Asda introduces £12.71 rule now in place in all UK stores

Asda's new £12.71 change has come into effect in all UK stores. From today (April 1), all of the retailer's 110,000 hourly-paid colleagues working in Asda Retail and Asda Express will receive a 4% above-inflation pay rise across a two-stage pay rise. The first stage will see employees' rates increased to £12.71, with those working inside the M25 seeing their pay boosted to £13.93.

The supermarket said that the pay increase represents an £80 million investment, with colleagues' pay expected to rise again later on this year.

James Goodman, Chief People Officer, Asda, said: “Our store‑based colleagues are at the core of our business and the role they play serving customers is central to our Formula for Growth turnaround plan.

"I’m pleased we’ve been able to give them an above‑inflation pay award and invest in this way. I’d also like to thank them for their continued hard work and commitment to making Asda better every day.”

Since TDR Capital and the Issa brothers acquired Asda in 2021, the company has invested a huge £575 million in retail pay.

A second stage of pay rises planned for July 5, 2026, will see colleagues' pay boosted further to £13.10, and £14.35 for those working inside the M25.

It comes as Primark has also increased its employees' pay across the UK. From today, those working for the fashion retailer will be earning an hourly rate of £13, while those working in London will receive £13.71.

Kari Rodgers, UK Retail Director at Primark, said: “As retail becomes a more demanding environment, our colleagues play an increasingly important role to support our customers and the local communities we’re part of up and down the country.

"By investing in increasing colleague pay, we hope this goes some way towards recognising their hard work, commitment and the value they bring every day.”