Costa Coffee Raises Pay for 15,000 Employees
Costa Coffee has announced a 5% wage increase for over 15,000 hourly-paid workers, starting April 1, 2025. This Costa Coffee pay rise is greater than the UK’s inflation rate of 2.5% and will be in line with a rise in the government-mandated national minimum wage.
Impact on the Economy and Interest Rates
The Bank of England is closely monitoring wage settlements as it assesses future interest rate adjustments. Just this month the central bank made a quarter-point rate cut. Costa Coffee pay rise and wage growth in late 2024 has shown signs of resilience despite the headwinds.
New Pay Structure at Costa Coffee
Costa Coffee, owned by Coca-Cola Co, confirmed that starting wages will rise from £12.00 to £12.60 per hour. This Costa Coffee pay rise comes before the UK government’s planned 6.7% national living wage increase to £12.21 per hour for most adults in April.
Through our extensive research, we found that even experienced staff could not afford rent in central London without the help of their families. These recent changes aims to address that problem and ensure that makes a real difference.
Other Retailers Follow Suit
Costa Coffee operates 1,500 company-owned stores across the UK. Other big name retailers, like Sainsbury’s and Lidl GB, has also announce pay increases above the inflation rate. To help workers cope with rising prices, hourly wage hikes such as the Costa Coffee pay rise will occur but employers need help from the government.
