Asda is to give a 10% pay rise to over 115,000 employees at 663 of its stores.
The supermarket giant will increase its rates for hourly-paid store staff to £11 per hour from April and £11.11 per hour from July.
Asda, which is owned by the billionaire Issa brothers and TDR Capital, said the move would result in a record £141m investment.
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The news comes after an 8% pay increase for hourly-paid retail roles during 2022.
In addition, all eligible hourly-paid store employees who have been with Asda for more than three months will receive a bonus payment for 2022. This amount will be confirmed at the end of February and paid to colleagues the following month.
Co-owner Mohsin Issa said: "We appreciate the great job that our store colleagues do representing Asda while serving customers day in and day out.
"We know that rising living costs are affecting customers and colleagues alike and recognise we have a responsibility to support them during these challenging times. This is why we have made a record investment of £141m to increase pay for retail colleagues by 10% this year."
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Asda hit the headlines last month when it put close to 300 jobs at risk and announced plans to move over 4,000 workers to lower-paid roles.
The chain was proposing to move some overnight restocking shifts at 184 of its sites to the daytime.
If the plans go ahead, 211 night shift manager roles will be at risk.
Asda added that the changes will also affect 4,137 hourly paid workers, who will see shift patterns moved to daytime and lose their night shift pay premium, of at least £2.52 per hour.
It also revealed a 22% reduction in employee hours across all Post Offices, with four Post Offices reducing opening hours by c.9%.
The proposal will impact 23 salaried Post Office managers and 200 hourly-paid colleagues.
Meanwhile, it will also shut seven in-store pharmacies, which employ 14 pharmacists and 48 other workers.
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