Sainsbury’s has increased how much it pays its workers, making it the highest paying retailer in the UK.

The increase will mean that 121,000 store colleagues will benefit from the reformed, equalised terms.

The hourly rate was £8 but has now been increased to £9.20 an hour after a comprehensive consultation process with colleagues across the country.

A Sainsbury’s spokesman said: “The pay increase represents an investment of over £110 million and will make Sainsbury’s the highest paying retailer in the country.”

Following the conclusion of the consultation process, the pay increase and contractual changes will come into effect in September 2018.

Simon Roberts, Retail and Operations Director at Sainsbury’s, said:“I believe this is the right thing to do and am proud to be offering such a significant pay boost to over 120,000 store colleagues across the country.

“This is in recognition of their hard work and dedication to providing our customers with best in class service every day. This also sets our business up for the future, ensuring we have a better-equipped workforce, fit for the future of retail.”

While over 93% of store colleagues will see a pay boost, a minority will not benefit from the changes being introduced.