Lidl has increased basic wages for its workers, bringing them into line with its discount rival Aldi.
The supermarket will lift pay per hour to £12.40 for those outside greater London and £13.65 for employees within the M25 motorway.
It means that both German discount chains now pay more than the major supermarket groups in the UK.
Lidl’s new rate comes into force at the beginning of June, the same day as Aldi.
Lidl UK’s chief executive, Ryan McDonnell, said that the supermarket was expanding and “it’s absolutely right, therefore, that we continue to offer industry-leading pay”.
It recently announced that it would build new stores in Bristol and Birmingham, as well as new sites in London.
The National Living Wage, which is set by the government, rose from £10.42 to £11.44 in April and was expanded to include workers over 21 rather than over 23 years-olds.
The main supermarkets all pay above the minimum wage – typically offering rates of more than £13 an hour for people inside greater London and at least £12 for those outside.
For example, Tesco gives its staff £12.02 or £13.13 an hour depending on where they work.
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