Lidl has invested a further £39.5m into raising hourly pay for store and warehouse staff, making it the UK’s highest-paying supermarket.

Lidl fascai against blue sky

From October, 40% of hourly paid Lidl staff will earn at least £12 an hour

From October 1, Lidl will raise base-level pay rates from £10.10 to £10.90 per hour outside of London and £11.30 to £11.95 per hour within the M25, with colleagues earning up to £12 and £13 per hour respectively. 

The discounter said this pay rise represented an increase of between 10% and 14.5% for staff over the past 12 months and means that from October, 40% of hourly paid colleagues will be paid at least £12 an hour. 

The grocer also said it would be increasing its night shift premium from £2 to £3 an hour, along with the freezer premium, which will be bumped from £1 to £1.50 an hour.

This is the second time in the past year that Lidl has increased hourly pay for frontline staff in its stores and warehouses, and comes at a time when soaring inflation, food and energy costs, and interest rates are driving the cost-of-living crisis.

The announcement comes the same day that the National Living Wage was boosted by a record 10% to £10.90 across the UK and £11.95 in London. 

Lidl chief executive Ryan McDonnell said: “We have introduced these rate increases to reflect the key role and tireless efforts of our incredible colleagues working in our 935 stores and 13 warehouses.

“The role that we as a discounter play in giving households access to good affordable food cannot be underestimated, now more than ever. But the ongoing commitment and dedication of our colleagues in making it all possible for our customers cannot be underestimated either – our business simply would not run without them.”

In July, rival Aldi increased pay for shopfloor staff for the second time this year. The discounter said all store assistants will receive a 40p per hour increase in their pay to a minimum of £10.50 per hour across the UK, and £11.95 within the M25, from September. Around 26,000 store staff will benefit from the pay increase.