Lidl UK will increase the entry level wages for staff from £8.45 to £8.75 from next March.
The retailer said the move would directly benefit 16,000 staff and make them the highest paid supermarket employees in the UK.
The hourly rate for employees in London will also rise from £9.75 to £10.20.
The wage increase will represent an additional annual investment of over £3.5m.
Lidl said the move was part of its pledge to match the Living Wage Foundation’s rates, which were recently recalculated due to increases in the cost of living.
“As the fastest growing supermarket, our business is continuing to go from strength to strength, and it’s only right that we show our commitment to our colleagues in the same way that they commit to the business and our customers each and every day,” said Lidl UK CEO Christian Härtnagel.
Lidl UK HR board director Nan Gibson added: “Without our incredibly dedicated workforce we would not be able to positively impact the lives of our customer in the way that we do. I’m incredibly proud, therefore, to once again show our dedication to our team by increasing wages and ensuring that, at the very least, salaries support the cost of living.”