Lidl is increasing the pay for hourly paid UK colleagues for the third time in 12 months in a move that represents an investment of more than £2.5m.

The new rise means minimum pay will reach £12.40 an hour across the country, up from £12. In London, entry-level pay will increase to £13.65, up from £13.55.

The discount supermarket said the new base rates “equal the best hourly pay in the sector” and will rise with length of service, with pay reaching £13 nationally and £14 in London.

While the latest investment in pay totals over £2.5m, Lidl also invested £37m in March this year in addition to an £8m investment in September 2023.

The total investment over the past 12 months totals nearly £50m.

The supermarket added that the investment follows “record trading and market share gains” over spring, with its market share now standing at a “record” 8%.

Lidl’s store portfolio has now reached more than 960, with more than 32,000 employees in the UK.

The latest pay jump will apply from June 1.

Lidl GB chief executive Ryan McDonnell said: As we continue to expand, we are welcoming more customers and attracting more colleagues into the business every day. It’s absolutely right, therefore, that we continue to offer industry-leading pay.”

Lidl GB chief human resources officer Stephanie Rogers added: The critical role that our colleagues play in driving our growth is always front of mind for us, which is why we’re committed to offering extremely competitive pay alongside a raft of other benefits.

”We want to continue to support and strengthen the teams that run our stores and warehouses every day while attracting the best new talent. This latest investment helps us to do just that.”