Tesco's staff to share £116m

Thousands of workers at the supermarket giant Tesco will share a £116m payout as two savings schemes invested in the supermarket's shares mature today.

Savers who have put aside £250 a month for five years will receive £49,000, while those who have saved £10 a month are in line for nearly £1,952, Tesco said.

Tesco is one of a number of UK employers to offer Save as You Earn (SAYE) schemes, which allow employees to invest a maximum of £250 a month in the company's shares, which are bought at the price current when the employee entered the scheme. Tesco's scheme is one of the best performing because of the steep rise in its share price, which has nearly tripled in the past five years. The most recent three and five-year schemes attracted applications from more than one in four members of staff.

SAYE was introduced more than 20 years ago as a way to encourage workers to become stakeholders in their own companies and to boost private investment in the stock market.

The proceeds of SAYE schemes are subject to capital gains tax but the investment is relatively risk free because if the company's share price falls the individual can reclaim the cash they invested rather than taking the price for the shares.