Lidl GB, the UK division of the German discount supermarket, has announced a pay increase of at least 2.8% for its 28,000 hourly workers. The raise surpasses the current inflation rate of
2.5%, the company confirmed on Monday.
The Bank of England is closely monitoring wage trends as it considers future interest rate decisions, following a recent quarter-point cut.
Lidl’s revised pay structure comes ahead of the UK government’s planned 6.7% increase in the national minimum wage, which will rise to £12.21 per hour for most adults starting in April.
Under the new pay scheme, entry-level wages at Lidl GB will increase from £12.40 to £12.75 per hour nationwide from March, with the potential to rise to £13.65 based on tenure. In London, the starting rate will be set at £14, increasing to £14.35 over time.
The wage hike, expected to cost the retailer nearly £15 million, aligns with similar moves from other major supermarkets. Sainsbury’s, the UK’s second-largest grocery retailer, will raise its minimum hourly pay to £12.45 in March, while Aldi will implement a minimum rate of £12.71.
Meanwhile, Britain’s job market continues to show signs of slowdown, with a survey released on Monday indicating the sharpest drop in staff demand since mid-2020. The decline is attributed to economic uncertainty and the impact of the government's payroll tax increase on hiring. Photo by Chabe01, Wikimedia commons.