Lidl has become the first UK supermarket to pledge to pay its staff a real living wage in a move that will hand pay rises to 9,000 workers.

  • Lidl to pay staff £8.20 an hour and £9.35 in London from October
  • Rates outstrip George Osborne’s national living wage
  • Boss Gottschlich “incredibly proud” of new pay rates

The discounter will pay employees across England, Scotland and Wales £8.20 an hour, while staff working in London will earn £9.35 per hour – rates that are expected to be set by the Living Wage Foundation when it makes it reveals its new rates in November.

Lidl’s new rates of pay, which come into force on October 1, will outstrip Chancellor George Osborne’s suggested living wage of £7.20 an hour for workers over the age of 25.

The German grocer said the move, which will cost it £9m a year, will benefit 53% of its 17,000-strong workforce, including those aged under 25.

“Lidl employees will be amongst the best paid in the supermarket sector, and that’s something I feel incredibly proud about”

Ronny Gottschlich, Lidl

The decision came after supermarket rival Sainsbury’s handed its 137,000 shopfloor workers a 4% pay rise that will see store staff of all ages earn £7.36 per hour – more than the £7.20 national living wage unveiled by Osborne during his summer Budget. That will come into force next April.

Swedish furniture specialist Ikea became the first UK retailer to sign up to pay its staff the rate the Living Wage Foundation has been campaigning for of £7.85 per hour and £9.15 per hour to those working in London. But the Living Wage Foundation is poised to increase those rates later in the year.

Lidl UK boss Ronny Gottschlich said: “At Lidl UK we are proud of our achievements, proud of our growth, and proud of our unwavering commitment to our customers and quality products, but most of all we are proud of our employees who make everything possible.

“We recognise that every employee forms an integral part of team Lidl and each individual’s contribution is valued. It’s therefore only right that we show our commitment, in the same way that the team commit to the business and our customers each and every day, by ensuring a wage that supports the cost of living.

“As a result, Lidl employees will be amongst the best paid in the supermarket sector, and that’s something I feel incredibly proud about.”

Grocery pay

Supermarket rival Tesco already pays its shopfloor staff £7.39 an hour, while Morrisons pays a minimum of £6.83.

Asda pays store staff £6.89 per hour outside London, a rate that will increase to £7.00 in October. Lidl’s dicsount rival Aldi pays staff £8.15 per hour.

An Aldi spokesman said: “We have offered our staff market-leading rates of pay for over a decade, significantly higher than the sector average and well above the Government’s proposed National Living Wage.  

“We regularly review our pay and benefits at all levels to ensure they remain industry-leading, and we are actively engaging with the Government and the Living Wage Foundation.”

Last month credit rating agency Moody’s suggested that the grocers could shutter stores and hire fewer over-25s when the national living wage of £7.20 per hour becomes law in April. It will increase to £9 an hour by 2020.