Lidl will hand all 23,000 of its front-line staff a one-off £200 thank you payment as a reward for their work during the pandemic.
The award covers everyone from customer assistants and warehouse operatives to cleaners across more than 800 stores and 13 distribution centres.
It's also giving its 1,800 office-based colleagues,a one-off £100 payment to recognise their efforts in supporting the business.
Lidl GB chief executive Christian Härtnagel said: “Everyone in the food retail sector has been in the privileged position of being able to continue operating throughout this pandemic.
"However, it has been an extremely challenging period and our teams have done a phenomenal job in helping to keep the nation fed.
"I am incredibly proud of the dedication and commitment our colleagues have shown and continue to show and this payment is about recognising their unrelenting hard work and thanking each individual for the important part they’ve played in the year like no other.”
The £200 payment follows a £150 voucher issued to all colleagues last March.
Lidl has also said it will increase the wages of all colleagues on hourly rates from March 2021.
The new rates see entry-level wages rise to between £9.30 and £9.50 an hour outside the M25 and £10.75 and £10.85 within the M25.
Lidl isn't the only essential retailer to give staff a bonus or a pay rise as a reward for their continued hard work.
B&M's 30,000 shop floor workers will also get an extra week's wages as a thank you for their efforts over the pandemic, boss Simon Arora, said.
Meanwhile Aldi gave its 30,000 store staff a new year pay rise - seeing rates rise to £9.55 an hour from February 1or £11.07 an hour inside the M25. It also gave workers a 10% bonus ahead of Christmas.
Morrisons also announced a new pay deal that it says will guarantee at least £10 an hour for all staff.
