More than 9,000 staff at supermarket chain Lidl are being given a pay rise worth £1,200 a year after the discounter said it was hiking its minimum wages.
The supermarket will pay a minimum of £8.20 an hour across England, Scotland and Wales and £9.35 per hour in London from 1 October, benefiting 53 per cent of its 17,000-strong UK workforce.
The group currently pays £7.30 an hour outside London and £8.03 in the capital.
The move – which will cost £9 million – sees Lidl increase pay above the incoming national living wage, instead matching the rate expected to be set by the Living Wage Foundation, due to be announced in November.
It pledges to increase minimum wages further if the Living Wage Foundation sets a higher rate than expected.
Sainsbury’s increased wages four per cent for its 137,000 staff from the end of August, setting a new hourly rate of £7.36 an hour, while Tesco pays £7.39 an hour.
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But Lidl claims it will be the first British supermarket to adopt the higher rate being set by the Living Wage Foundation. Ronny Gottschlich, chief executive of Lidl UK, said: “Every employee forms an integral part of team Lidl, and each individual’s contribution is valued.
“It’s right that we show our commitment, in the same way that the team commit to the business and our customers each and every day, by ensuring a wage that supports the cost of living.”
Lidl confirmed it would not be raising prices as a result. A spokeswoman said: “It’s an investment in our people and we will continue to offer our customers the very best quality at every day low prices.”
But other retailers have warned of the impact of higher staff costs, with Next and Whitbread, which owns Costa Coffee and Premier Inn, cautioning they may need to raise prices as a result.
The national living wage announced by Chancellor George Osborne in his summer budget will see all workers aged 25 and over paid £7.20 an hour from next April, rising to £9 from 2020.
Lidl, with fellow discount chain Aldi, is putting pressure on the UK supermarket sector and has sparked a fierce price war among rivals.
