Aldi has raised minimum hourly pay from £9.40 to £9.55 nationally and from £10.90 to £11.07 inside the M25.
Taking into account paid breaks, the raise makes its staff the best-paid in the sector, says the discounter.
It comes after Morrisons last week announced it was the first supermarket to guarantee hourly pay of at least £10 across the UK, with the minimum set to rise from £9.20 in April. However, Morrisons does not give staff paid breaks.
Aldi argues that from 1 February, when the rise comes into effect, its minimum hourly pay will be £10.11 based on an average six-hour shift with paid breaks.
Aldi’s hourly rate also overtakes Lidl’s, which from March rises from £9.30 to £9.50 nationally and from £10.75 to £10.85 inside the M25.
All of Aldi’s 30,000 store assistants are to benefit from the new pay rate, which exceeds the Living Wage Foundation’s recommended ‘real living wage’ of £9.50 an hour nationally and £10.85 an hour in London.
Aldi’s new rate will rise after three years’ service to £10.57 nationally. In London it will rise after two years to £11.32.
Aldi also recently gave all store and distribution staff a 10% Christmas bonus, payable in December for the month of November.
“I want to express my sincere thanks to every single Aldi colleague who stepped up when it mattered and helped us succeed in our most important mission of all – feeding the nation,” said Aldi UK & Ireland CEO Giles Hurley.
“Their outstanding efforts have ensured our customers continue to have access to fresh affordable food, every single day,” he added. “It has never been more important to ensure our colleagues are rewarded fully for their immense contribution during a challenging period for everyone.”