Lidl UK has said it will raise wages for staff by 3% in June, which will give workers in the discounter their third pay rise in 12 months.
The British arm of the German supermarket giant said it would raise pay for staff to £12.40 per hour.
This is up from £12 per hour, which was introduced in March of this year.
In London, where the cost of living is higher, pay will increase from £13.55 per hour to £13.65.
A number of UK supermarkets have raised wages in the past few months as the country’s minimum wage rose.
Pay rises at big employers such as Lidl, which employs 32,000 people across the UK, are closely watched by the Bank of England (BoE).
The BoE said on Thursday it remains cautious as the still-strong growth of wages will add to inflationary pressures.
John Lewis and Co-Op in March announced pay rises for staff of 10% after the government raised the national living wage to £11.44 per hour.
Lidl is part of Germany’s Schwarz retail group, which is Britain’s sixth biggest supermarket chain with 8% of the market share.
The retailer said its latest increase would mean staff will continue to receive “industry-leading pay.”
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