Tesco's retail employees will receive a pay increase of 10% over the next year.

It's part of the company's 40 million euro investment in pay and benefits.

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Tesco Ireland has announced an investment in pay rates and benefits, which will see wages go up for employees nationwide.

The 10% pay increase for staff covers 2021, 2022 and 2023.

Retail workers received a 6% pay award since the start of April 2022.

And will receive another 4% pay award next year.

The retailer says it's paid staff a further 10 million euro in pandemic payments since Covid-19 began.

Along with the pay increases, Tesco have invested in benefits.

They include paid maternity, paternity and adoptive leave, along with a new pension plan.

Natasha Adams, CEO of Tesco Ireland, says she is pleased to be making this announcement at a time that is challenging for families with rising living costs.

Ms Adams added that the pay would give staff a sense of certainty with their pay and benefits.

"Our colleagues are at the heart of our business, and I thank them for their continued hard work and dedication to serving our customers and communities.”

According to Joe.ie, Tesco created nearly 700 jobs last year.

With 225 driver roles advertised and 450 permanent jobs on offer around the country.

The pandemic increased demand for the company's delivery service, especially for people over the age of 65.

Prior to the pandemic, approximately 3% of Tesco online deliveries supported its over-65 customers.

But they now account for over 14% of online weekly orders.