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Aldi is set to take back the title of highest-paying UK supermarket after announcing new higher rates of pay. As of next month, all staff working at the discounter will earn at least £8.53 per hour, or £9.75 per hour in London, in a 1.5% increase to minimum wages.

The new rate will not only see the retailer paying 8p more per hour than the official Living Wage Foundation recommends, but also surpasses the £8.45 per hour paid to staff by rival Lidl, until now the highest rate paid by a major supermarket.

“We recognise the valuable contribution that our thousands of store employees make every day,” said Aldi UK CEO Matthew Barnes. “Their dedication and commitment is a key reason why Aldi is the UK’s fastest-growing supermarket.

“We employ the best people in retail and invest in their training to enable them to carry out a range of different roles in store. This approach means that we can continue to provide customers with the lowest grocery prices in the UK.”

The company is currently recruiting 4,000 new permanent roles across the UK and will open its 700th store next month, progress it says keeps it on target to achieve 1,000 by 2022, with 3,356 current staff set to benefit from the pay increases announced today.

“We remain committed to being the best supermarket employer in Britain,” Barnes added. “This means that we will continue to provide employees with rates of pay and benefits that are the highest in the supermarket sector.”