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Supermarket giant Asda has increased wages for its 110,000 frontline retail workers, marking the second pay rise this year following an initial increase in April.

Starting yesterday (5 July 2026), the hourly rate for store-based staff across Asda’s national network of more than 1,000 locations has risen to £13.10. Meanwhile, employees working at stores located inside the M25 have seen their hourly wages increase to £14.35.

This latest adjustment completes a two-stage phased pay increase initially announced earlier this year.

The first phase, which took effect on 1 April 2026, saw hourly rates for staff outside London rise from £12.60 to £12.71, in line with the national living wage. London-based workers saw an increase from £13.82 to £13.93.

In total, this dual-phased wage increase represents an £80 million financial investment by the supermarket chain, delivering a 4% overall pay rise to its hourly-paid retail workforce.

James Goodman, chief people officer for Asda, said: “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.”

Earlier this year, Asda diluted plans for tougher disciplinary rules, telling employees it would no longer double the time taken to reset sickness absence records after workers complained that its new rules were too harsh.

Under the abandoned plans, staff with an absence rate of 3% or more would have their records reset every 12 months, rather than every six months. This would have made it more likely they would face disciplinary action for taking consecutive periods off sick.

This article is based on a piece written for Employee Benefits.

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