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It is expected to impact 110,000 hourly‑paid retail colleagues

Asda is making a major change across its supermarkets, which will affect all its store-based workers from this week.

The retailer announced that from July 5 it will increase its hourly rate to £13.10 for store-based workers outside the M25, and to £14.35 for those working within it.

This follows Asda also providing employees with a pay rise earlier this year. On April 1, the supermarket chain boosted the hourly rate for workers outside the M25 from £12.60 to £12.71, while those working inside the M25 saw hourly pay jump from £13.82 to £13.93.

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The increases were the first part of a two-step pay uplift, with the second increase having come into effect on Sunday (July 5), the Express reports.

At the time of the phased pay increase announcement, Asda said the change would result in 110,000 hourly‑paid retail colleagues receiving a 4% above‑inflation pay rise. The pay reward also represented an £80million investment, the supermarket chain said.

James Goodman, chief people officer, Asda, said at the time: "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."

Other major supermarkets have also issued pay rises to shop workers this year, including Sainsbury's which brought in a five per cent pay increase for hourly paid workers in March. It raised its hourly pay to £13.23 nationally and increased pay to £14.54 for colleagues in London.

Budget supermarket Lidl also increased its hourly entry-level pay to £13.45 an hour nationwide, from March 1, increasing to £14.45 with length of service. For employees in London, Lidl increased its starter pay from £14.35 to £14.80, rising to £15.30 with length of service.

Aldi has also issued two pay rises to store workers this year, with the retailer having now increased its starting rates to £13.50 nationally and £14.88 inside the M25.

Other major retailers including Marks & Spencer, John Lewis and Waitrose also announced pay rises for staff earlier this year.