Lidl GB has announced an additional £29 million investment in employee pay that enables it to claim the title of UK’s highest-paying supermarket. From 1 March, entry-level hourly pay will increase to £13.45 nationally, rising to £14.45 with tenure. In London, hourly pay will increase from £14.35 to £14.80, and up to £15.30 with length of service. This places Lidl ahead of Aldi, which will introduce £13.35 base rates from March 2026.
These changes ensure Lidl meets the Real Living Wage and London Living Wage standards, benefiting all 35,000 salaried and hourly employees nationwide.
In addition to pay increases, Lidl is doubling paternity leave from two to four weeks at full pay. After five years of service, employees will be eligible for eight weeks of full paid paternity leave. This builds on Lidl’s position as the first supermarket to offer 28 weeks of full pay for maternity or adoption leave. Lidl also provides paid leave for fertility treatment and for employees affected by pregnancy loss.
Stephanie Rogers, Chief People Officer at Lidl GB, said: “Our colleagues are the backbone of our business, and their success is our success. This is why I couldn’t be prouder that we’re able to offer the highest wages in the industry to reward our colleagues for their incredible work. We are continuing to mark unprecedented growth across Great Britain, creating thousands more jobs along the way, while continuing to invest in our people.”
The battle for talent
Lidl’s latest move is part of ongoing competition with Aldi to lead on pay. Announcing Aldi’s recent pay increase, Giles Hurley, chief executive officer of Aldi UK and Ireland, said: “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. This higher than planned pay rise is part of our promise to never be beaten on pay.”
Aldi and Lidl have contributed to rising supermarket pay across the UK. In 2022, The Living Wage Foundation reported that over two-thirds of supermarket staff earned below the Real Living Wage. However, increased competition in the post-pandemic job market and the entry of Aldi and Lidl have prompted supermarkets to offer higher pay and improved benefits.
Most major supermarkets continue to pay at or slightly above the government’s National Living Wage of £12.21 per hour for workers over 21, but benefits are also a key factor. Lidl leads on salary, while Aldi offers paid breaks valued at £1,365 per year for the average store worker. Aldi provides 26 weeks of full paid maternity leave, compared to Lidl’s 28 weeks, along with Lidl’s enhanced paternity leave.
Other supermarkets raise their game
Sainsbury’s has announced an above-inflation pay increase, raising staff pay to £13.23 per hour from March 2026, with London-based employees receiving £14.54 per hour. Its benefits package includes a 10% discount at Sainsbury’s, Argos, and Habitat, a pension scheme, sharesave options, and free food during shifts. The Co-op currently offers a minimum wage of £12.60, which increases to £13.46 with paid breaks. Co-op staff also receive a 30% discount on own-brand products and between 31 and 38 days of annual leave.
Lidl claiming the title of Britain’s highest-paying supermarket marks another decisive move in the supermarket pay wars — and one that will force the rest of the sector to take notice. As competition for talent intensifies, discounters are setting the pace not just on wages but on wider benefits too. With Aldi, Sainsbury’s and the Co‑op also raising the stakes, supermarkets know that pay, perks and purpose now matter more than ever. The only certainty? The race to be retail’s top employer is far from over.
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