Aldi has hiked its base rate of pay for all shopfloor staff to what it has dubbed “market-leading” levels.

The discounter will introduce new hourly rates of £9.40 for staff nationally and £10.90 for those working inside the M25 from February 1.

Aldi said the national rate will rise to £10.41 per hour for staff with three years’ service. Employees in London stores with two years’ service will earn £11.15 per hour.

Workers at the grocer currently earn £9.10 and £10.55 respectively.

Aldi’s new rates of pay outstrip the Living Wage Foundation’s recommended real living wage rates of £9.30 per hour nationally and £10.75 per hour inside the M25.

The grocer plans to hire more than 3,800 staff across its stores this year as it bids to expand its 874-shop portfolio. Aldi said it remains “on track” to hit its long-term target of 1,200 UK stores by 2025.

The discounter’s UK boss Giles Hurley said: “The dedication and commitment our store colleagues deliver every day when serving our customers underpins our success. We have the most efficient and productive workforce, and this is why they earn the highest rates of pay in the grocery sector.”