Lidl has announced that it will increase pay for around 28,000 hourly workers, with the new rates effective from March this year.

Entry-level pay will rise to £12.75 nationally, up from £12.40 and increase to £13.65 depending on the length of service. In London, new starters will see pay rates go up to £14.00, increasing to £14.35 over time.

The discounter said this latest investment into pay is worth around £15 million, including increases for salaried colleagues across the business.

In the past 12 months, Lidl said it has invested around £54 million in employee wages.

Lidl claims that the new rates are “market leading” as they exceed the government’s National Living Wage (NLW), which comes into force in April, by 50p.
Pay rates will also be greater than the Living Wage Foundation’s new Real Living Wage, which will also be implemented in April.

“We’re proud to offer leading pay rates in the sector, while fostering a culture of opportunity and inclusion that helps our teams thrive” said Stephanie Rogers, chief people officer, Lidl GB. “As we continue to grow, investing in our people remains at the heart of what we do, ensuring Lidl is not only a great place to shop but also a great place to work and grow a career.”

Last month, Sainsbury’s announced a five per cent pay increase for its 118,000 hourly-paid workers following what it described as its "biggest ever Christmas", with the raise to be implemented in two stages to manage inflation pressures.

According to research from the British Retail Consortium (BRC) releases in January, two-thirds of British retailers will increase prices due to rising costs including higher national insurance and the NLW.

Around half of retailers plan to reduce staff hours and cut headcount at both stores and head offices to manage the increased costs.

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