The supermarket chain will also offer bonuses to key workers as sales continue to boom during the pandemic.
The pay increase of more than two percent will take effect from March.
The minimum hourly pay for Sainsbury’s and Argos staff is expected to increase to £9.50 an hour, up from £9.00 and £9.30. Staff working inside London will receive £10.10.
Staff are also set to receive a bonus worth £530 for a full-time worker or three percent of their yearly wage. This is the third bonus given to staff since the pandemic began.
Sainsbury’s said that more than £100million has been given to workers since last March.
Clodagh Moriarty, retail and digital director at Sainsbury’s, said: “In the last 12 months our frontline colleagues have shown outstanding commitment to our customers.
“In recognition of everything they have achieved, we are giving them a pay rise, plus an additional one-off payment.”