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Aldi Raises Staff Pay Again To Hold On To Highest-Paying Supermarket Title

Aldi UK has upped the pay rate for its over 28,000 hourly paid workers for the second time in two months, leapfrogging a recent increase by rival Lidl to maintain its pledge to “never be beaten on pay”.

Aldi-Store

In July, Aldi announced that it would increase the pay for its Store Assistants from £12.75 an hour to £13.00 from 1st September, becoming the first supermarket in the UK to offer this minimum rate.

However, earlier this month, Lidl gave its workers a fifth pay rise in two years, upping its entry-level hourly rate from £12.75 to £13.00 from 1 September, rising to £13.95 depending on length of service. Staff working in its stores within the M25 will see their pay rise from £14.00 to £14.35, increasing to £14.65 with length of service.

In response, Aldi has today announced that its minimum rate will be £13.02 an hour from next month to maintain its position as sector leader. The rate increases to £13.95 with length of service. And in London, the discounter’s new rates are rising from £14.05 to £14.35, increasing to £14.66 with length of service.

In contrast, Tesco will pay a minimum of £12.64 an hour from 1st September.

Giles Hurley, Chief Executive Officer of Aldi UK and Ireland, commented: “Our colleagues are at the heart of our success, and we’re committed to ensuring they are fully rewarded for the outstanding work they do. This higher than planned pay rise is part of our promise to never be beaten on pay.”

NAM Implications:
  • The stand-out issue is that two discounters are leading the retail pay race.
  • Add to this the excitement of working with high-growth retailers…
  • …and this has to result in some migration by ‘best in class’ staff.