Our Tesco Benefits

Our Tesco Benefits is more than just a benefits package. It’s a powerful force for good that is helping to create a better future for Tesco employees and their families.

In the following sections of this post, I will take a closer look at the different benefits that are available to Tesco employees, and we will explore how these benefits are helping to create a better future for everyone at Tesco.

Our Tesco Benefits

What Is Our Tesco Benefits

Approach to Reward

Tesco is committed to being an employer of choice, offering competitive pay rates and benefits to all colleagues, regardless of their role or level of expertise. We believe that a strong reward package is essential to attracting, retaining, and motivating the best talent.

Our reward principles are simple, fair, competitive, and sustainable. We apply these principles across our entire reward package, which includes basic pay, benefits, and career development opportunities.

We believe that everyone deserves to be paid fairly for their work, and we offer competitive pay rates that are in line with the market. We also offer a wide range of benefits, including health insurance, paid time off, retirement savings plans, and discounts on Tesco products and services.

In addition to competitive pay and benefits, we also offer our colleagues a variety of career development opportunities. We are committed to helping our colleagues grow and develop their skills, and we offer a variety of training and development programs, as well as opportunities for internal mobility.

We believe that a strong reward package is essential to our success as a business. By offering competitive pay rates and benefits, and by investing in our colleagues’ development, we are able to attract, retain, and motivate the best talent. This helps us to deliver a great customer experience and to achieve our business goals.

Always investing in our colleagues

Tesco has a long history of investing in our colleagues’ pay. Over the last 10 years, we have increased the hourly rate of pay for store and customer fulfillment center (CFC) colleagues in the UK from £7.14 to at least £11.02.

In the past year, we have made significant investments in pay, including:

  • April 2022: £200m investment, including a 5.8% pay increase
  • October 2022: Further pay increase to £10.30 per hour
  • February 2023: Biggest ever investment in hourly pay, increasing the pay rate by 72p to £11.02, brought forward to April 2023

This represents the third pay increase for these colleagues in 10 months, totaling an increase of over 15% in hourly pay.

We also introduced two new London Allowance areas, increasing the allowance for colleagues working in the London Boroughs to 93p per hour and for colleagues working in Outer London to 73p per hour.

We are committed to supporting our colleagues, especially during these challenging times. We believe that our colleagues deserve to be rewarded for their hard work and dedication, and we are proud to be one of the highest-paying retailers in the UK.

Tesco is committed to providing our colleagues with a competitive benefits package that meets their diverse needs. We offer a wide range of rewards and benefits in addition to base pay, and we believe that our total reward package is one of the best in the UK retail sector.

Our colleagues have a very positive view of their reward package. In our 2023 Every Voice Matters survey, 82% of colleagues said that they would recommend Tesco as a great place to work, an increase from our 2022 score of 81%.

We are committed to supporting our colleagues with the cost of living, and we have recently strengthened the range of free products that we offer in our back-of-store areas for everyone working in stores. These products include fresh fruit, hot and cold drinks, breakfast items, soup, bread, pasta and noodle snacks, and toiletries such as deodorant and sanitary products.

We believe that our colleagues deserve to be rewarded for their hard work and dedication, and we are proud to offer them a competitive and comprehensive benefits package.

Working collaboratively with our Unions

We take time to listen to our coworkers and understand their feelings and concerns.

When it’s time to decide on rewards, we discuss it thoroughly with our unions, who represent our workers. We even give our colleagues paid time off from their regular jobs to join these discussions.

We’ve built strong relationships with these unions over the years, so we have agreements in place with them that cover all our hourly-paid workers across the UK. We make sure our colleagues and union representatives are part of the decision-making process before we finalize any reward-related choices. And whatever decisions we make, they benefit all eligible colleagues, whether they are part of a union or not.

We think unions should be as inclusive as possible. We actively support our colleagues in various ways, like including union information in our new employee orientations and making it easy for colleagues to pay their union membership fees through their paychecks.

As part of our ongoing efforts to understand and improve the colleague experience, we make changes based on what matters most to our colleagues. For instance, after hearing from our colleagues, we decided that when we have job openings, we’ll offer them first to colleagues who work less than 16 hours a week before looking for new hires. When we do hire new people, we make sure their contracts are for at least 16 hours a week, except in our smallest convenience stores.

We’re flexible in how we invest in rewards for our colleagues. For example, during the COVID-19 pandemic, we gave extra payments to our colleagues as a way of saying “thank you.” We also consider what’s best for our colleagues at different times. In 2022, we agreed to a one-year pay deal for our hourly-paid colleagues instead of a two-year deal so that we could review it again in 2023, especially because the cost of living was going up.

Balanced benefits package

Colleague discount

Tesco Colleague Clubcard is a valuable benefit for our colleagues, offering them a range of discounts on their shopping and other services.

After three months of service, colleagues receive a discount card for themselves and a second card for a family member. They can then enjoy a 10% discount on their grocery shopping, increasing to 15% every payday weekend and 20% during the peak Christmas week.

This discount is combined with Tesco’s other value offers, such as Aldi Price Match, Low Everyday Prices, and Clubcard Prices, to give colleagues access to some of the cheapest food in the market, every time they shop.

Colleagues also receive a 20% discount on F&F clothing throughout the year, including across the great range of school uniforms and children’s basics. And they can enjoy extremely competitive deals at Tesco Mobile, with 10% off both pay-monthly and sim-only deals.

In addition, over half of Tesco colleagues are registered for Colleague Deals and Discounts, which gives them access to savings and cashback on everyday products and services outside of Tesco.

A competitive pension

Tesco Retirement Savings Plan

Tesco offers a retirement savings plan to all colleagues, providing both savings for retirement and valuable life cover for every member. Colleagues are automatically enrolled in the pension scheme, with the vast majority remaining in the scheme (opt-out rate of approximately 5-6% per annum). At retirement, members can choose how to take their savings in a way that suits them.


  • Savings for retirement
  • Valuable life cover
  • Automatic enrollment
  • Low opt-out rate
  • Flexible retirement options

Buy As You Earn

Tesco Buy As You Earn (SAYE) Scheme

The SAYE scheme is a great way for Tesco colleagues to buy Tesco shares on a regular basis, directly from their salary. There is complete flexibility to start, stop, and change the amount of salary used to buy shares at any time.


  • Convenient way to buy Tesco shares
  • Flexible and adaptable to your needs
  • No fees or charges

How it works:

  1. Choose how much of your salary you want to save each month, from £5 to £500.
  2. Choose how long you want to save for, either three or five years.
  3. At the end of your savings period, you can buy Tesco shares at a discounted price, or you can take your money back.


If you save £100 per month for three years, you will have saved £3,600. At the end of the three years, you will be able to buy Tesco shares at a discounted price of £3 per share. This means that you will be able to buy 1,200 Tesco shares.

Save As You Earn

Tesco Save As You Earn (SAYE) Scheme

Tesco SAYE is a share savings scheme that gives colleagues the opportunity to save directly from their pay for three or five years. At the end of the savings period, colleagues can choose to buy Tesco shares at a discounted price or get their savings back.

The SAYE scheme is Tesco’s longest-running share scheme, with thousands of colleagues participating for nearly 40 years. Over 15% of Tesco colleagues are actively saving in one or more SAYE schemes.

Benefits of the SAYE scheme:

  • Convenient way to save for the future
  • Build a stake in Tesco
  • Save at a discounted price
  • Flexible and adaptable to your needs

How to join the SAYE scheme:

  1. Be a Tesco colleague with at least three months’ service.
  2. Choose how much of your salary you want to save each month, from £5 to £500.
  3. Choose how long you want to save for, either three or five years.
  4. Sign up for the SAYE scheme through Tesco Payroll.

At the end of the savings period:

  1. You will receive a letter from Tesco Shareview, the company that administers the SAYE scheme.
  2. The letter will tell you how many Tesco shares you can buy at a discounted price.
  3. You can choose to buy all of the shares, some of the shares, or no shares at all.
  4. If you choose to buy some or all of the shares, you will need to pay the difference between the discounted price and the current market price.
  5. If you choose not to buy any shares, you will receive your savings back, plus any interest that has accrued.

Pay Advance

Tesco Pay Advance

In November 2022, Tesco launched a new benefit for colleagues in the UK to help them with unexpected or large expenses. The Pay Advance scheme allows colleagues to access up to 25% of their contractual pay early for a single set fee of £1.49.

The scheme is aimed at helping colleagues avoid having to take on expensive debt with high-interest payments, such as payday loans if they are faced with unexpected bills.


  • Access to up to 25% of contractual pay early
  • Low single set fee of £1.49
  • Avoid expensive debt with high-interest payments

How it works:

  1. Colleagues can apply for a Pay Advance online through Tesco’s Colleague Portal.
  2. Once approved, the advance is typically paid into the colleague’s bank account within 24 hours.
  3. The advance is automatically repaid from the colleague’s next paycheck.

Cycle to Work scheme

The Cycle to Work scheme is a government-supported initiative that allows employees to purchase a bike and safety accessories tax-free through salary sacrifice. This is a great way to encourage healthier and greener commuting. To make the scheme more accessible, we have extended the loan repayment terms and increased the maximum loan amount. This means that colleagues can now borrow more money to purchase a wider range of bikes.

Employee Assistance Programme

Every colleague in the UK has access to our free, confidential Employee Assistance Programme. Services include:

  • Mental health experts
  • Structured clinical counseling (available in a language of your choice)
  • Financial information
  • Legal information
  • Career and life coaching
  • Bereavement counseling

Financial Wellbeing

Our Financial Wellbeing Hub is a resource for colleagues who need help managing their finances. It provides tips and tools on how to:

  • Make the most of your money
  • Borrow responsibly
  • Find the best financial products and services for your needs
  • Identify and achieve your savings goals
  • Get help if you are struggling financially

If you are feeling overwhelmed by your finances, please speak to your line manager or People team for additional support.

Tesco Staff Discount For Life

Tesco colleagues enjoy a wide range of benefits, including:

  • A Colleague Clubcard for you and a family member, with discounts in-store and online.
  • Discounts at Tesco Mobile, which you can share with your family.
  • An enhanced Employee Assistance Programme to support your emotional well-being.
  • An award-winning pension scheme with matching contributions up to 7.5%.
  • Life assurance is five times your salary.
  • A Simplyhealth cash plan to help with health-related costs.
  • Free access to a Virtual GP for you and your family, 24/7.
  • Share schemes to help you save and invest in Tesco.
  • Cycle to work scheme.
  • The chance to take a Lifestyle Break of up to 12 months, with your role kept safe until you return.
  • The right to request flexible working from day one.
  • Access to an exclusive deals and discounts website.
  • Opportunities to get involved in fundraising activities with Tesco’s long-term charity partners.
  • Access to ongoing learning opportunities and award-winning training.

Tesco Colleague Clubcard discounts:

  • 10% off purchases in Tesco stores and online, rising to 15% after every payday for a four-day period.
  • 10% off at One Stop.
  • 10% off pay monthly and SIM only deals with Tesco Mobile.
  • 10% off Tesco Cafe purchases, increasing to 15% after payday for a four-day period.
  • 20% off all F&F purchases.
  • 20% off car, pet, travel, and home insurance at Tesco Bank.
  • 30% off glasses at Vision Express and free eye tests.
  • 50% off health checks at Tesco Pharmacy.

Tesco’s benefits package is designed to support colleagues’ financial, physical, and mental wellbeing. It also offers opportunities for colleagues to develop their skills and careers.

Tesco Retired Staff Benefits

Tesco retired staff benefits include:

  • Tesco Colleague Clubcard for Life: This gives retired staff a 10% discount on all purchases in Tesco stores and online, as well as a 15% discount on their shopping on the last Friday to Sunday of every month and 20% off shopping for special events.
  • Tesco Mobile discount: Retired staff can get a 10% discount on Tesco Mobile pay monthly and SIM-only deals.
  • Simplyhealth cash plan: Retired staff can get a discounted Simplyhealth cash plan, which helps with health-related costs including dental care, physiotherapy, prescriptions, and more.
  • Access to an exclusive deals and discounts website: Retired staff can save money on everyday purchases, treats for the family, eating out, and utility bills by accessing the exclusive deals and discounts website.
  • Discounts from Tesco’s partners: Retired staff can also get discounts from Tesco’s partners, such as F&F, Vision Express, and Tesco Pharmacy.

In addition to these financial benefits, Tesco retired staff also have access to a number of other benefits, such as:

  • The Tesco Retired Colleague Community: This is a social group for retired staff to stay connected with Tesco and each other.
  • Tesco’s newsletter: Retired staff can receive Tesco’s newsletter to keep up with the latest news and events from the company.
  • Tesco’s website: Retired staff can access Tesco’s website to view their pension information and benefits, as well as to find out about job opportunities for retired staff.

Tesco is committed to supporting its retired staff, and the benefits package is designed to help them enjoy their retirement.

Tesco Staff Discount Dates 2023

The Tesco staff discount dates for 2023 are as follows:

MonthStart dateEnd date

Please note that these dates are subject to change

To use your Tesco staff discount, simply present your Colleague Clubcard at the checkout. You can also use your Colleague Clubcard online by entering the number at checkout.


I hope you enjoyed this post about Our Tesco Benefits! As you can see, Tesco offers a wide range of benefits to its colleagues, from discounts and rewards to support and training. These benefits are designed to help colleagues save money, improve their well-being, and develop their careers.

I’m grateful to Tesco for offering such a comprehensive benefits package. It makes me feel valued and appreciated as a colleague. I’m also proud to work for a company that is committed to supporting its employees.

Thank you for taking the time to read this post. I hope it has been informative and helpful. If you have any questions about Tesco Colleague Benefits, please don’t hesitate to contact your line manager or the Tesco Colleague Benefits website. 😊

For more details visit https://ourtesco.info/