From 1 March, Lidl’s national rate is set to rise from £11.40 to £12, while its rate within the M25 will increase from £12.85 to £13.55.
Aldi announced an identical rate change in December, effective from 1 February.
Aldi offers paid breaks – which it says are worth an additional £900 a year to the average store worker – while Lidl does not.
Lidl claims to be the only discounter to reward staff with an employee discount, of 10%, which it says carries a value of up to £600 per person.
Sainsbury’s minimum store worker rate is also set to rise to £12 an hour nationally from March, but its London rate will be lower than Lidl and Aldi’s, at £13.15.
At both Lidl and Aldi, the hourly store and warehouse worker rates rise with length of service. Lidl’s rises to £13.85 within the M25 and £13 nationally. Aldi’s rate within the M25 also rises to £13.85 but its higher national rate is slightly lower than Lidl’s, at £12.95.
Lidl’s higher rates come into effect after two years’ service. Aldi shopworkers within the M25 also get the higher rate after two years’ service but must wait a further year elsewhere in the country.
Both discounters increased their rates twice last year, and the year before, in an ongoing battle to offer market-leading pay.
Lidl said its latest pay rise would benefit 26,000 staff and was part of a £37m investment, which also included a new £2 an hour bank holiday premium and an increase in night shift premium from £3 to £3.50.
“Customers are switching to Lidl from every other supermarket, and it’s our colleagues’ commitment and performance that is making this happen,” said Lidl GB CEO Ryan McDonnell. “It’s only right, therefore, that we thank them for their incredible work and reward them for their efforts.
“Investing in our people is vital as we set our sights further on increasing our market share and bringing our high-quality, great-value products to even more households.”
Lidl GB chief human resources officer Stephanie Rogers said: “Offering competitive pay and being a great place to work for our colleagues is crucial to our success.
“This has always been central to our strategy, ever since opening our doors almost 30 years ago. I’m pleased we are continuing to hold ourselves to our high standards and rewarding colleagues with the highest rates of pay in the sector.”
The national living wage is set to rise by 9.8% to £11.44 an hour from 1 April. The latest real living wage, set by the Living Wage Foundation in October, is £12 an hour nationally and £13.15 an hour in London.