3rd Mar 2026 15:22
(Alliance News) - Retail giant Marks & Spencer Group PLC has dropped its pledge to pay workers in line with the real living wage in this year's salary rise for its 55,000 store employees.
The high street chain said it will increase pay by at least 6.4% from April 1 for retail staff, boosting wages to GBP13.41 an hour nationwide, or GBP14.74 per hour for those based in London.
This sees the retailer offer rates above the national minimum wage, which is rising to GBP12.71 per hour for those aged 21 and over across the UK from April 1.
But M&S is no longer offering pay in line with the real living wage, which is a voluntary benchmark, designed to be calculated on the real cost of living, and is currently set at GBP13.45 an hour in the UK and GBP14.80 in London.
Shareholder activists ShareAction called on M&S to reinstate its pay in line with the real living wage, which it said was "vital for workers' livelihoods".
Louise Eldridge, head of good work at ShareAction, said: "With more people struggling to cover basics, it's worrying to see another major supermarket step back from the only independent benchmark on what people need to take home to meet the cost of living, save for the future, and enjoy their free time.
"This is vital for workers' livelihoods and it's good for business, with all kinds of proven benefits including reducing turnover and attracting higher quality talent.
"We're urging M&S – and the wider sector – to consider restoring full alignment with the real living wage in London and across the UK."
In last March's store staff pay rise announcement, M&S said it had increased pay to be in line with the real living wage.
But the group said on Tuesday it had invested more than GBP350 million in staff pay over the past four years, equating to an increase of more than 34%.
The latest pay rise for store staff will cost it more than GBP70 million and is higher than inflation, it said.
Stuart Machin, chief executive of M&S, said: "This is a good cost and I am pleased that we have been able to make this inflation-beating pay award, alongside our leading package of benefits.
"This investment reflects the central role our people play as we reshape M&S for growth."
Shares in M&S were down 3.1% at 370.30 pence in London on Tuesday afternoon.
By Holly Williams, Press Association Business Editor
source: PA
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