Aldi is increasing pay for its workers, establishing itself at the top of the supermarket pay league.
The German supermarket giant has boosted its starting pay for store assistants to a minimum of £11.40 per hour nationally, and £12.85 within the M25.
The new starting rate, which is effective from 1st July 2023 represents an investment of more than £100m in colleague pay in the last 12 months.
Wages are also set to rise further for senior colleagues – based on length of service.
Depending on length of service, some staff could secure rates of £12.30 nationally and £13.15 within the M25.
The new rates are higher than the Real Living Wage, set by the Living Wage Foundation, of £10.90 per hour nationally and £11.95 for colleagues in London.
Read more: John Lewis staff lose bonuses amid drop in customer spending
“We believe our colleagues are the best in the sector and we are committed to ensuring they are also the best paid,” Chief Executive of Aldi UK and Ireland, Giles Hurley said.
“We are incredibly proud of every single member of Team Aldi and are pleased to become the first UK supermarket to pay a minimum of £11.40 per hour to all store assistants.”
This announcement follows a series of pay increases by Aldi, including raising hourly rates for 7,000 warehouse colleagues across the UK.
Read more: 72% of businesses suffered staff resignations in the last six months
The German discounter is also the only supermarket to pay for breaks.
Supermarket pay has shot up in the last year as stores compete for staff in a labour market where supply has been restricted by Brexit worker visa limits.
Several chains and hospitality businesses have raised pay to hold on to experienced staff and attract new recruits.
Aldi is set to create more than 6,000 new jobs this year, adding to the 4,500 permanent roles created last year.