German-owned discount supermarket Lidl GB has followed rivals in raising hourly pay rates for the second time this year as competition heats up to attract and retain staff in a tight labour market amid a cost of living crisis.
The retailer said on Thursday it would pay workers outside of London a minimum of £10.90 ($12.3) an hour, up from £10.10, and workers in London a minimum of £11.95, up from £11.30.
The increases, benefiting over 23,500 workers, will take effect on 1 October and cost Lidl GB £39.5 million.
It said the new pay rates represent an increase of 10% to 14.5% compared to this time last year.
Inflation
UK inflation in August was 9.9%.
With Britain's jobless rate at its lowest since 1974 the Bank of England is watching pay settlements closely as it mulls further rises in interest rates.
Lidl's move follows rises announced by Marks & Spencer on Wednesday and Sainsbury's last week.
Marks & Spencer
Marks & Spencer announced on Wednesday that it was going to raise pay for store workers amid a cost-of-living crisis and a tight labour market.
With Britain's jobless rate at its lowest since 1974 the Bank of England is watching pay settlements closely as it mulls further rises in interest rates.
M&S said that from 1 October more than 40,000 workers will see their hourly pay increase to a minimum of £10.20.
The additional autumn pay review, a first for M&S, follows an initial pay increase in April to £10 an hour from £9.50.
Sainsburys
Sainsbury's said on 14 September that it would raise pay for its workers again as it looks to attract and retain staff in a tight labour market.
The UK's second largest grocer and one of the country's biggest employers said 127,000 hourly paid workers will get a 25 pence per hour increase from 16 October, costing it £20 million ($23.4 million).
Sainsbury's said the rise, the first ever outside of the annual pay review, would help its staff get through the cost of living crisis.
News by Reuters, edited by Donna Ahern, Checkout. For more retail stories, click here. Click subscribe to sign up for the Checkout print edition.
