The UK arm of German discount supermarket Aldi is to give its hourly-paid store workers a second pay rise in two months to match the increased level offered by rival Lidl GB.
This latest increase from Aldi – which employs 45,000 people and is Britain’s fourth-largest grocer after Tesco, Sainsbury’s and Asda – will likely be noted by the Bank of England, which is keeping a close eye on wage settlements as it assesses further moves in interest rates after cutting by a quarter-point earlier this month.
Having announced last month a pay rise for all store assistants to at least £12.71 an hour nationally and £14 per hour in London from 1 March, Aldi said on Friday it would now pay a minimum of £12.75 nationally and £14.05 in London.
This will march the national rate of Lidl GB, which announced an above-inflation pay rise on 10 February.
The new rates come ahead of the UK government’s 6.7% hike in the national minimum wage to £12.21 for most adults that will kick off in April.
Aldi said a further increase to £12.85 per hour nationally and £14.16 for London workers will be paid from September.
The retailer also offers paid breaks.
British pay growth accelerated in late 2024, according to official data published on Tuesday.
The data suggested that the jobs market was holding up and underscored why the Bank of England has been cautious about cutting interest rates despite a weak overall economy.
Sainsbury’s and Costa Coffee have also recently announced above-inflation pay rises.
