Aldi raises stakes again in battle to be UK’s highest-paying supermarket

The stakes have been upped again in the battle between Aldi and Lidl to be the UK’s highest-paying supermarket.

Aldi is the latest to play its hand, promising store workers a minimum £13.02 an hour nationally from 1 September – 2p more than Lidl.

It is the latest twist in a tit-for-tat battle that has seen one announce its new September pay rates only to be outbid by the other.

In July, Aldi said it was increasing hourly pay for store assistants to £13.00 nationally, and to 14.33 an hour in London.

Then, earlier this month, Lidl announced a new rate matching Aldi’s nationally, at £13, but went 2p higher in London, promising workers in the capital £14.35 an hour from September.

Today, Aldi has added 2p to its London offer, putting the two neck-and-neck at £14.35 an hour in the capital, but gone 2p higher than Lidl across the rest of the country.

The last pay rises implemented by the two retailers, effective from 1 March this year, followed a similar bidding war. Aldi set the bar first, only for Lidl to match it within the M25 but go higher elsewhere. Then Aldi matched Lidl’s offer nationally but went higher inside the M25. It left both paying a current £12.75 an hour nationally and Aldi paying £14.05 an hour within the M25 to Lidl’s £14.

Both discounters’ rates also rise after a minimum length of service. As of 1 September, Aldi’s will rise to £13.95 after a minimum three years’ service nationally and to £14.66 after a minimum two years’ service in London.

Effective from the same date, Lidl’s will rise to £13.95 an hour after three years’ service nationally and to £14.65 after two years’ service within the M25.

Aldi is also one of the few remaining retailers to offer paid breaks, which it says are worth about £1,425 a year to the average store worker.

Both pay London rates anywhere inside the M25.

“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,” said Aldi UK and Ireland CEO Giles Hurley.

“This higher-than-planned pay rise is part of our promise to never be beaten on pay.”

The two discounters have long paid the sector’s highest entry-level shopworker rates, with their new-store pipelines requiring constant recruitment.