The British arm of German discounter Aldi will increase pay rates for around 7,000 warehouse workers from next month, a third rise since January 2022, it said on Wednesday.
From 1 February warehouse workers will receive a minimum rate of £13.18 ($16.28) an hour, up from £11.48 last January.
Many UK employers are offering higher pay deals in the face of a still tight labour market and the escalating cost-of-living.
Inflation in Britain is running at 10.5% and the Bank of England is watching pay settlements closely as it mulls further rises in interest rates.
Aldi UK, Britain's fourth largest supermarket group after Tesco, Sainsbury's and Asda, said that it has invested over £100 million in pay over the last 12 months.
From this month it is paying store staff a minimum of £11 an hour outside of London and a minimum of £12.45 in the capital.
Sainsbury's Raises Staff Pay
Earlier this month Sainsbury's announced another pay rise for its store staff, while Tesco is in talks with workers and unions on its pay review.
British supermarket group said on 5 January that it would raise pay for its 127,000 hourly paid workers to at least £11 an hour from February as it looks to attract and retain staff in a tight labour market.
Britain's second largest grocer after Tesco, and one of the country's biggest private sector employers, said the pay of Sainsbury’s and Argos retail workers would increase from £10.25 to £11.00 per hour outside of London, and from £11.30 to £11.95 per hour in the capital.
News by Reuters, edited by Donna Ahern, Checkout. For more retail stories, click here. Click subscribe to sign up for the Checkout print edition.