The UK arm of German discount supermarket Lidl is to give its 28,000 hourly paid workers a pay rise of at least 2.8%, it said, a figure slightly above the current inflation rate of 2.5%.
The Bank of England is keeping a close eye on wage settlements as it assesses further moves in interest rates after cutting by a quarter-point last week.
The new pay rates come ahead of the UK government's 6.7% hike in the national minimum wage to £12.21 for most adults that will kick in from April.
Lidl GB said entry-level pay will rise to £12.75 ($15.81) an hour nationally, from £12.40 from March, increasing to £13.65 depending on length of service. London pay rates will start at £14, increasing to £14.35 over time.
Pay Increases
The pay increases from Britain's sixth largest grocer will cost it almost £15 million, it said.
Lidl GB's rises follow moves by No. 2 player Sainsbury's and No. 3 Aldi. From March, Sainsbury's will switch to a minimum of £12.45 an hour, while Aldi will pay at least £12.71.
Britain's jobs market showed further signs of cooling at the start of the year as demand for staff fell by the most since mid-2020, according to a survey published on Monday that suggested the government's payroll tax hike and economic uncertainty were weighing on hiring.
Stephanie Rogers, chief people officer at Lidl GB, commented, “More households than ever before are choosing to shop with us, making Lidl the fastest growing bricks-and-mortar supermarket for well over a year.
“This success is largely due to our hard-working colleagues, who each play an incredibly important role in delivering quality, affordable products to communities across the country. This pay increase is just one part of our commitment to creating a workplace where everyone feels valued.”
News by Reuters, additional reporting by ESM.
