As the UK enters a new year of economic challenges and workforce expectations, many ASDA employees and job seekers are asking: Will there be a 2026 pay rise? While no formal update has been confirmed as of January 2026, there are strong signs that another increase is likely on the way.
ASDA’s history of aligning its pay with inflation and national wage benchmarks, coupled with ongoing union negotiations, suggests that a 2026 update is a matter of when, not if.
Here’s what we know so far:
- National Living Wage will rise to £12.71 in April 2026
- ASDA’s current national rate is £12.60, and £13.82 inside the M25
- GMB union has already submitted its 2026 pay claim for distribution colleagues
- Retail negotiations are expected after the new NLW rate is in place
Let’s explore the current picture, what’s expected next, and what this means for ASDA staff and the wider UK supermarket industry.
What Was ASDA’s Pay Structure in 2025?
ASDA’s 2025 pay deal was among the most substantial in the UK retail sector, both in structure and scale. Backed by an £80 million investment, the supermarket implemented a phased pay increase for approximately 115,000 store-based colleagues.
The approach aligned with inflation, union expectations, and the Real Living Wage benchmark. It was structured in three stages, starting in April and concluding in October 2025.
Hourly Pay Rates in 2025 (Phased Rollout)
Phase Location Hourly Rate
April 2025 National £12.21
July 2025 National £12.45
October 2025 National £12.60
April 2025 Inside M25 £13.38
July 2025 Inside M25 £13.62
October 2025 Inside M25 £13.82
These structured increases allowed ASDA to manage internal budgets while delivering a consistent message to its workforce, fair pay and recognition are central to company values.
Alongside this, employees benefited from:
- 15% staff discount at ASDA stores
- Enhanced maternity, paternity, and kinship leave policies
- Paid leave for pregnancy loss before 24 weeks
- Participation in company-wide training and progression schemes
This holistic reward strategy made ASDA one of the more progressive employers in the UK grocery sector in 2025.
Has ASDA Officially Announced Its 2026 Pay Rise?
As of late January 2026, ASDA has not made an official announcement about a retail pay rise for this year. However, based on union activity, market conditions, and historical patterns, a new deal is anticipated in the first quarter.
Here’s why a 2026 pay rise is likely:
- The National Living Wage increases to £12.71 from 1 April 2026, which will technically overtake ASDA’s current national rate of £12.60.
- GMB union submitted a 2026 pay claim for distribution colleagues in October 2025, and negotiations began in December.
- Usdaw, the union for retail workers, is expected to enter talks soon to ensure parity across roles.
- ASDA has consistently aligned wages with national and union expectations since 2021.
While there is no formal confirmation, the pay gap between current ASDA rates and the new NLW is small enough to require an update, and large enough to be seen as urgent by employees.
A likely scenario is that ASDA announces a modest uplift in early spring 2026, taking national rates above £12.71 to retain a margin above statutory minimums.
How Will the April 2026 National Living Wage Impact ASDA Pay?
The upcoming increase to the National Living Wage (NLW) from £11.44 to £12.71 will directly affect retail employers. ASDA’s current national hourly rate sits at £12.60, which means it will fall below the new legal minimum unless adjusted.
Here’s how the rates compare:
Category Hourly Rate
ASDA National (Oct 2025) £12.60
National Living Wage (Apr 2026) £12.71
ASDA Inside M25 (Oct 2025) £13.82
This creates two key expectations:
- ASDA will at minimum match or slightly exceed the £12.71 threshold for national pay.
- London-based (M25) colleagues are likely to receive a proportional increase to maintain pay scale consistency.
Historically, ASDA has not allowed its base pay to fall below national legal standards. A timely announcement will be crucial for compliance, staff satisfaction, and internal payroll operations.
Will ASDA Repeat Its Phased Pay Increase Model in 2026?
In 2025, ASDA introduced pay rises in three phases (April, July, October), a slightly more extended rollout than Sainsbury’s two-stage approach. This method allowed financial flexibility while delivering measurable benefits to staff throughout the year.
Benefits of a Phased Model:
- Spreads operational cost increases over multiple quarters
- Gives colleagues visible progress across the year
- Aligns with national wage benchmarks and union demands
It is likely that ASDA will repeat a similar pattern in 2026. With the NLW kicking in from April, the first phase may begin then, followed by a possible second phase in late summer or autumn, depending on inflation forecasts and competitive pressures.
If replicated, this approach would likely push national rates to around £12.85–£13.00 and inside M25 rates to £14.00 or more by the end of 2026.
How Does ASDA’s 2026 Pay Compare to Other Supermarkets?
Compared to competitors, ASDA’s pay in 2025 placed it among the top UK supermarkets for hourly compensation. However, with the NLW increasing in April 2026, any delay in updating rates may briefly drop ASDA below rivals.
Let’s compare ASDA to expected 2026 rates at other chains:
Employer National Rate (2025/2026) London Rate
ASDA (Oct 2025) £12.60 £13.82
National Living Wage (Apr 2026) £12.71 —
Sainsbury’s (Expected 2026) £12.75–£12.90 £14.00+
Tesco (Est. 2026) £12.80 £13.90
ASDA will likely respond with a similar uplift to stay aligned or slightly ahead of the National Living Wage, maintaining its competitive stance and avoiding negative staff sentiment.
What Employee Benefits Do ASDA Staff Receive in 2026?
Beyond pay, ASDA offers a suite of benefits that significantly impact total employee value. These perks remained unchanged from 2025 and include both financial and wellbeing support.
Here’s what ASDA employees can currently access:
- 15% Colleague Discount across ASDA stores
- Enhanced Maternity and Adoption Leave: 26 weeks paid
- Paternity leave increased from 2 to 4 weeks
- Kinship carers leave 26 weeks of paid leave
- Pregnancy loss leave 2 weeks paid (pre-24 weeks)
- Access to internal training and career development programmes
Such benefits complement hourly wages and position ASDA as a socially responsible employer, particularly for working parents and carers.
“We’re proud to have invested more than £500 million in retail pay over the last four years,” said Hayley Tatum, ASDA Chief People Officer. “This latest pay investment, plus an increased colleague discount and enhanced family-friendly policies, recognises the key role they play in serving customers each day.”
Why Is ASDA Aligned With the Real Living Wage?
Although ASDA’s pay strategy historically aligns with the National Living Wage, recent union activity has pushed for alignment with the Real Living Wage, a voluntary standard reflecting actual living costs.
In 2025, ASDA agreed to match the Real Living Wage in some business areas like ASDA Express, LEON, and Food Services, as negotiated by Usdaw.
“We are pleased to have secured an above-inflation increase and to match the Real Living Wage,” said Jayne Allport, Usdaw National Officer.
For 2026, it is expected that unions will continue pressing for Real Living Wage coverage across all roles, especially if inflation remains high. This would likely lead to national rates above £13.00 and London rates pushing beyond £14.00, strengthening ASDA’s appeal to socially conscious workers.
How Do ASDA’s Pay Decisions Influence Retention?
In retail, where employee turnover is traditionally high, predictable pay increases and strong benefits play a crucial role in staff retention. ASDA’s multi-phase 2025 raise helped stabilise its workforce and maintain morale during a tough economic year.
Staff who feel supported are more likely to stay, reducing recruitment costs and improving in-store service consistency. With a large proportion of colleagues now relying on retail jobs as long-term careers, wage certainty and regular reviews are no longer optional; they’re expected.
“Our members are key workers delivering essential services. It’s only right they are fairly rewarded with a living wage,” noted Usdaw’s Jayne Allport in a 2025 statement.
ASDA’s ability to retain talent in 2026 may depend on how swiftly and generously it responds to the new National Living Wage and inflation forecasts.
When Can ASDA Employees Expect 2026 Pay Confirmation?
Based on past timelines, ASDA is most likely to confirm its 2026 pay rise between February and March 2026. This would allow time for payroll systems to update before the new NLW becomes law on 1 April.
If previous rollouts are a guide, ASDA may implement:
- Phase 1 in April 2026, to meet legal requirements
- Phase 2 in summer or autumn, providing uplift beyond statutory minimums
Until then, employees are encouraged to follow internal communications, official ASDA newsrooms, and union updates from Usdaw and GMB for confirmed details.
Final Thoughts: What to Expect from ASDA in 2026?
ASDA’s track record suggests it will not only meet but likely exceed the new National Living Wage of £12.71 per hour. A staged pay increase, potentially beginning in April and continuing into autumn, appears the most likely model once again.
For retail colleagues and job seekers, the message is clear: ASDA remains a competitive employer with a commitment to fair wages and improved benefits. The next few weeks will be key in confirming the next steps.
FAQs About ASDA’s 2026 Pay Rise
Has ASDA officially confirmed a 2026 pay rise yet?
As of early 2026, ASDA has not formally announced a pay rise for retail colleagues. However, ongoing union activity and the April 2026 National Living Wage increase strongly suggest an update is expected.
What is the current ASDA hourly pay rate going into 2026?
ASDA’s national hourly rate stands at £12.60, while colleagues working inside the M25 earn £13.82 per hour. These rates were finalised in October 2025 following a phased increase.
How will the April 2026 National Living Wage affect ASDA pay?
The National Living Wage will rise to £12.71 in April 2026, which is higher than ASDA’s current national rate. This means ASDA will need to increase pay to remain legally compliant.
Will ASDA increase London pay if national rates rise in 2026?
Historically, ASDA maintains a clear gap between national and inside M25 pay rates. If national pay rises in 2026, a proportional increase for London-based colleagues is likely.
Are distribution workers included in ASDA’s 2026 pay discussions?
Distribution colleagues are represented separately by the GMB union. A 2026 pay claim for distribution staff was submitted in October 2025, with negotiations beginning later that year.
Does ASDA usually introduce pay rises in stages?
Yes, ASDA used a phased approach in 2025 with increases in April, July, and October. A similar staged model is expected if a 2026 pay rise is announced.
Will ASDA continue aligning pay with the Real Living Wage?
In 2025, ASDA matched the Real Living Wage in areas such as ASDA Express, Food Service, and LEON. Trade unions are expected to push for continued alignment in 2026.
