The chain is also creating 2,000 jobs.
Costa Coffee is to create 2,000 jobs and give its staff a 5% pay rise.
The chain said its 14,500 employees across the UK will receive the wage increase in recognition of their “commitment and continued passion” during the pandemic.
Costa is also looking to recruit more than 2,000 new workers as it prepares for a busy festive season, with more stores opening and higher consumer demand.
From October, all store staff will receive a pay rise of at least 45p an hour, taking minimum pay to £9.36.
The company’s “Barista Maestros” will see their pay go up by 65p per hour, taking the minimum for these more experienced roles to £10.29.
Top rates of pay, depending on location and experience, will go up to £11.29 an hour from £10.64.
The company said the average store employee, working between 20 and 40 hours a week, will see their annual take-home pay go up by between £500 and £900, while those receiving a 65p rise will see an increase of between £700 and £1,400.
Neil Lake, managing director of Costa Coffee UK & Ireland said: “Our team members are the heart of our business and, as we continue to emerge stronger from the pandemic, this 5% pay increase is one way we are able to show our thanks to them.
“Our teams have been through the most challenging year and a half in living memory and have shown incredible passion, resilience and commitment as they continue to serve perfectly-crafted cups of Costa coffee to consumers across the country.
“We are committed to putting our team members first, investing in their safety and wellbeing and their long-term development, ensuring we remain a great place to work for all our current team members and the 2,000 team members we’ll be welcoming in the coming months.”