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Got Your First UK Payslip? Here's What Every Line Means
7 min read
Tesco is one of the UK's largest private sector employers. Understanding your Tesco payslip requires knowing the specific pay elements the retailer uses and how they're taxed. Here's a complete guide for 2026.
Tesco's 2026 Pay Rates
Tesco raised its minimum hourly rate for store colleagues in 2026 to £13.15/hour — above the National Living Wage of £12.71. London stores pay a higher London Rate.
Common Tesco Payslip Lines
- Basic Pay: Your contracted hours at the standard hourly rate. This is your guaranteed earnings.
- Night Premium: An uplift (typically 20–30% extra per hour) for hours worked between 10pm and 6am. Fully taxable.
- Sunday Premium: Many Tesco workers receive a Sunday premium (historically double-time, though terms vary by contract vintage). If your contract includes it, this appears separately and is fully taxable.
- Bank Holiday Pay: Enhanced rates for bank holiday working — again, fully taxable and subject to NI.
- Overtime: Hours beyond your contracted hours, typically at 1.5x your base rate.
- Tesco Pension: Employee contributions to the Tesco Pensions Plan (a defined contribution arrangement). Contributions range from 4–7.5% depending on your plan choice.
Holiday Pay Implications
Under UK case law (Bear Scotland, Lock v British Gas), Tesco's holiday pay should reflect regular overtime and premium payments, not just basic salary. If you regularly work night shifts and take holiday, your holiday pay should include the night premium. Check your holiday payslips against your average premium-inclusive pay.
Frequently Asked Questions
My Sunday premium isn't showing on my payslip anymore — what happened?
Some Tesco colleagues on older contracts had Sunday premiums phased out as part of pay restructuring in 2016/17. If yours has been removed, check your current contract — the terms on how premiums were removed (and whether compensation was offered) vary.
Can I check if Tesco is paying me correctly?
Yes — use our Payslip Checker to enter your gross pay and see if the deductions match what you should be paying based on your tax code and salary.