Primark will raise pay for around 27,000 workers by an average of 9.1% from 1 April as minimum wage increases in the UK, it was announced today.
The discount fashion and homewares retailer is part of Associated British Foods and is the latest company to announce pay rises ahead of the government’s increase.
Pay Increase
Primark workers across the UK will earn on average £12 per hour from next month.
For workers in London the average pay will increase to £12.56 per hour. This is due to the increased cost of living in the capital.
The national minimum wage in the UK is rising from £10.42 per hour for workers over 21 to £11.44 per hour.
This makes for an approximate increase of 9.8%.
The change is taking place from 1 April and a number of businesses, such as Tesco, Asda and Marks & Spencer, have raised wages in anticipation.
The Bank Of England
The Bank of England (BoE) is closely watching wage increases as it determines interest rates.
Though inflation has levelled in recent months, BoE has remained reluctant to lower interest rates.
This is due to the concern that wage increases could drive inflation within the economy.
Inflation in the UK levelled at 4% in January of this year, but remained double the bank’s target of 2%.
The BoE has kept interest rates at their highest level in 16 years. It will watch pay increases as it assesses whether to cut these rates.
Recently, Marks & Spencer and the Co-Op raised pay by 10.1%, Asda by 8.4%, Tesco by 9.1% and John Lewis by 10%.
Read More: The Co-Op Joins Rivals In Raising Staff Pay
