The payment, which is limited to those earning less than £35,000, will be paid to around 61% of its workers. Nationwide pays out the bonus by the end of the year, with the first payment of £600 arriving in October and the second in December.
The construction company has around 18,000 employees in the UK.
Debbie Crosbie, CEO of Nationwide Building Society, said: “The coming months will be worrying for many people and we are always considering new ways to help our members.
“Rising prices also affect our colleagues and that is why we are providing this additional support.”
Nationwide is offering further support after carrying out an annual salary review earlier this year which gave all of its staff a 4% salary increase.
Apart from the annual salary review, the Building Society said it had also raised the base salaries of 4,000 of its lowest-paid colleagues in response to the rising cost of living.
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The move comes as inflation hits 9.4%, with the Bank of England (BoE) predicting it could reach 13% by the end of the year. This is the highest level the UK has seen in over 40 years.
This is on top of rising energy bills, with bills for typical use expected to top £4,200 next year.
Nationwide joins various other companies supporting its staff during the cost of living crisis.
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Following successful campaigns by Unite Union, the lowest paid workers at HSBC, Barclays, NatWest, Lloyds Banking Group, Co-operative Bank, Virgin Money, TSB and Standard Life ROI will receive a cost of living payment in their pay of August.
Supermarket chain Aldi has also announced a second pay rise for its staff working in Aldi distribution centres.
Starting in September, all workers paid by the hour in its warehouses will receive wage increases of up to 9% over their previous January 2022 hourly rates.
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The majority of fulfillment center roles are warehouse pickers, who will be paid a rate of £12.66 per hour.
All logistics colleagues working outside normal business hours will also see their night shift bonuses increased by 20-25% of their normal hourly rate.
In February, the fifth-largest supermarket also raised the wages of 28,000 of its store workers.
Aldi announced in January that its store assistants would earn at least £10.10 an hour nationwide and that staff inside the M25 were to earn £11.55.
Supermarket Asda has announced that its employees will receive a 44p raise. Their hourly wage would drop from £9.66 to £10.10.
Other chains such as Tesco, Marks and Spencer, Sainsbury’s and Lidl have also announced increases since the start of the year.
Morrisons has announced that its 10p pay rise will come into effect from October for its staff.
News of Nationwide’s cost of living payment for its staff comes as the Office for National Statistics (ONS) today announced that UK workers see a 3 per cent pay cut when inflation is taken into account account.
This represents the biggest drop since records began in 2001.