Lidl has raised its basic wages to match those of its competitor Aldi in a bid to attract and retain staff.

The supermarket’s new hourly rates of £12.40 for workers outside greater London and £13.65 for those within the M25 motorway now align with Aldi’s pay scale.

This move positions both German discount chains ahead of the major supermarket groups in terms of pay. Lidl’s chief executive, Ryan McDonnell, emphasized the company’s commitment to offering industry-leading pay, especially as it expands with plans for new stores across the UK.

The increase in wages comes amid a broader context of rising minimum wage standards set by the government. The National Living Wage, which rose to £11.44 in April and now covers workers over the age of 21, serves as a benchmark for companies’ wage policies.

While the main supermarkets typically pay above the minimum wage, with rates exceeding £13 an hour in greater London and at least £12 outside the capital, Lidl and Aldi’s move highlights their competitiveness in the retail sector. For example, Tesco offers hourly rates ranging from £12.02 to £13.13 depending on location.

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Lidl increases pay to match Aldi in battle for staff