By Lawrence White
LONDON (Reuters) – HSBC will pay some of its British workforce a one-off payment of 1500 pounds ($1,830) to help them deal with the cost of living, a memo seen by Reuters on Monday said.
In doing so the bank became the latest British lender to boost staff pay, as the country grapples with inflation levels not seen in 40 years.
The one-off payment will apply to certain low pay grade jobs, the memo said, adding it was needed to help ensure staff “avoid financial hardship”.
HSBC earlier on Monday reported better-than-expected profits https://www.reuters.com/article/hsbc-results-idCAKBN2P70OV and raised its outlook for returns, as rising interest rates lift its revenues.
Rivals NatWest https://www.reuters.com/business/finance/natwest-hands-staff-pay-rise-ease-impact-soaring-inflation-2022-07-07, Barclays https://www.reuters.com/world/uk/barclays-gives-35000-staff-cost-of-living-pay-rise-2022-06-30 and Lloyds https://www.reuters.com/business/finance/lloyds-offers-staff-1000-pounds-ease-cost-living-crisis-2022-06-13/#:~:text=L)%20told%20staff%20on%20Monday,a%20memo%20seen%20by%20Reuters have also all handed thousands of their staff either a one-off payment or a raise to help them cope.
Employee union Unite welcomed HSBC’s move, adding: “The union will continue to campaign to ensure all staff receive a fully-consolidated pay increase to ensure pay rates keep up with living costs.”
HSBC will consider the longer-term impact of inflation for all staff later as part of its regular annual pay review, the memo said.
($1 = 0.8195 pounds)
(Reporting By Lawrence White, additional reporting by Iain Withers, Editing by Barbara Lewis)