Lidl is set to boost the hourly pay of 28,000 employees next month, exceeding the government's upcoming minimum wage increase.
The supermarket chain announced that its new pay rates, effective in March, will surpass the National Living Wage (NLW) by over 50p.
Entry-level employees across the UK can expect an increase to £12.75 an hour, up from £12.40, with the potential to earn £13.65 with extended service. London employees will see a starting wage of £14 an hour, rising to £14.35 with length of service.
This move precedes the government's scheduled NLW increase to £12.21 in April, up from the current £11.44 for those aged 21 and over.
Lidl's pay rise represents a near-£15 million investment, encompassing increases for salaried workers as well. The company employs over 35,000 people across the UK.
It comes as firms across the retail sector have warned over the cost pressures of soaring staff bills after Labour announced a increase in national insurance contributions (NICs) for employers and minimum wage rise, both from April 1, in its recent Budget.
The NICs increase is designed to help pay for improvements to public services like the NHS, but retailers have criticised it for making it more expensive to hire people.
A number of large firms, including Sainsbury’s, axed jobs in the first weeks of 2025, with some of the cuts at the supermarket understood to be linked to the increase in NICs.
Stephanie Rogers, chief people officer at Lidl, said: “We’re proud to offer leading pay rates in the sector, while fostering a culture of opportunity and inclusion that helps our teams thrive.
“As we continue to grow, investing in our people remains at the heart of what we do.”
The move follows an announcement last month by fellow German discounter Aldi, which said it will raise its minimum hourly rate to £12.71, up from £12.40 an hour currently.
Aldi’s employees in and around London will see their hourly pay rise to at least £14, up from £13.65.
