John Lewis Partnership to invest GBP 114m in pay
What: John Lewis Partnership commits GBP 114m to employee pay, raising minimum hourly rates to GBP 12.40 nationwide and GBP 13.85 in London, benefiting 99.3% of its workforce.
Why it is important: This substantial investment reinforces the retail sector's shift towards competitive compensation packages, following M&S's GBP 95m commitment and reflecting an industry-wide recognition of employee value in driving business success.
The John Lewis Partnership has announced a significant GBP 114 million investment in employee compensation for 2025, building upon its GBP 116 million commitment from the previous year. This comprehensive pay package will benefit 65,000 employees, with 99.3% of partners receiving increases. The retailer has allocated GBP 88 million of this investment specifically for voluntary pay increases above the National Minimum Wage threshold. Store employees will see their pay rise by 7.4%, with high performers eligible for an additional 2% increase, potentially reaching 9.4%. The minimum hourly rate for staff outside London will increase from GBP 11.55 to GBP 12.40, while London-based employees will see rates rise from GBP 12.89 to GBP 13.85. For those in specialist roles requiring enhanced skills, pay rates will reach GBP 13.39 per hour, increasing to GBP 14.96 within the M25. This investment brings the partnership's total pay enhancement to GBP 295 million over the past three years, with standard hourly rates showing a 25% increase during this period.
IADS Notes: The retail sector has witnessed unprecedented investment in employee compensation since March 2024, when John Lewis initiated a GBP 116 million pay boost. This trend gained momentum with M&S's GBP 95 million commitment in March 2025, establishing new industry benchmarks. The focus on employee development is further evidenced by John Lewis's February 2025 milestone of 5,000 apprentices, demonstrating how major retailers are combining competitive pay with career progression opportunities. This latest GBP 114 million investment reinforces the industry's recognition that employee satisfaction and retention are crucial for maintaining competitive advantage in the evolving retail landscape.
