Read more: Pharmacy bosses issue warning over shortage of cough and cold medicines Sainsbury's had already increased basic hourly pay for workers from £9.50 to £10 earlier in 2021. Sainsbury's and Argos hourly retail colleague pay will increase from £10.25 to £11.00 per hour and from £11.30 to £11.95 per hour in London, it said. The retailer has also extended its offer of free food during shifts for workers by a further six months as part of the latest package. Simon Roberts, chief executive of Sainsbury's, said: "We are acutely aware of how tough things are for millions of households this winter and we know that particularly after Christmas, budgets will be tighter than ever. "This is a massive investment that reflects the real challenges our people are facing right now. I'm really pleased that the progress we are making against our strategy means that we can continue to prioritise investing in colleagues to reward them for the fantastic service they deliver every day."