Discount supermarket Lidl will next month increase pay for thousands of its staff in Britain by at least 12pc
German-owned Lidl, which has been winning market share from bigger rivals Tesco, Asda, Sainsbury's and Morrisons , said that from October 1 its employees will receive a minimum of £8.20 an hour across England, Scotland and Wales and £9.35 an hour in London.
"Lidl employees will be amongst the best paid in the supermarket sector," said chief executive Ronny Gottschlich.
It said this will be an average wage increase of £1,200 per year, with 53pcof Lidl UK's 17,000 workforce and all age brackets benefiting. Lidl has been paying workers outside of London a minimum of £7.30 an hour, while those in the capital get at least £8.03.
The new levels are above a compulsory "national living wage" which the British government is introducing next April for workers aged over 25.
Lidl said the pay rise will cost it an additional £9m a year.
Clothing retailer Next, Costa Coffee owner Whitbread and pub chain Wetherspoon's have all warned about the higher costs stemming from the government's wage policy.