Barclays said the pay increase would be effective 1 August 2022 and meant staff will receive a £1,200 increase to their annual pensionable salary.
This increase brings forward part of the annual pay review that would normally have come into effect in March next year.
The lender said it would continue to monitor the economic situation globally and consider its approach to pay in each country in the local context.
Barclays said was looking to hire 1,100 roles in the UK as it continued to develop products and services to serve the changing needs of our customers and clients, especially in digitised consumer finance.
Barclays’ decision follows that of other UK employers who are reacting to a steep rise in the cost of living, as consumer prices – including food and energy prices – rising by their highest level in 40 years.
Last month Lloyds Banking Group said it would be giving 64,000 employees, excluding senior managers and executives, a £1,000 one-off payment to help with household bills.
It said: “As the rising cost of living continues to impact our people and our customers, we’ve been assessing the evolving outlook for inflation and considering how we can support you even further.”
