Lidl has confirmed a significant new pay structure that will come into effect from March 1, 2026, marking its seventh wage increase since 2023 and reinforcing its position as a leading employer in the competitive supermarket sector.
Nationwide Pay Increase to £13.45 Per Hour
The German discount supermarket giant has announced that entry-level pay across Great Britain will rise to £13.45 per hour from next month. This substantial increase represents a major investment in Lidl's workforce of approximately 35,000 employees, with the total pay rise package valued at around £29 million.
Stephanie Rogers, chief people officer at Lidl, emphasised the company's commitment to its staff, stating: "Our colleagues are the backbone of our business, and their success is our success." She added: "We are continuing to mark unprecedented growth across Great Britain, creating thousands more jobs along the way, while continuing to invest in our people."
Length of Service Rewards and London Premium
The new pay structure includes additional rewards for longer-serving employees, with the £13.45 rate increasing to £14.45 per hour based on length of service. This means a longer-serving employee working a standard nine-hour shift five days a week would earn £33,813 annually from March 1.
In London, where living costs are higher, new starter pay will increase from £14.35 to £14.80 per hour, rising further to £15.30 with length of service. Lidl claims these moves once again establish it as the "highest paying UK supermarket", surpassing rivals including Aldi, Morrisons, Tesco, Asda, and Sainsbury's.
Context of National Wage Increases
Lidl's announcement comes as the government prepares to implement national living wage increases from April. The national living wage for over-21s will rise from £12.21 to £12.71 per hour, which the government estimates will increase annual earnings for approximately 2.4 million workers by £900.
Additionally, the minimum wage for 18- to 20-year-olds will increase by 8.5% to £10.85 per hour, narrowing the gap with older workers as part of the government's commitment to "raise the floor" on wages for all workers. The Treasury had expressed concerns about potential impacts on youth employment, with some ministers and officials fearing younger workers could be "priced out" of entry-level jobs.
Broader Employment Landscape
The Labour Party government has accepted the Low Pay Commission's recommendations in full, with the chancellor stating that those on low incomes would be "properly rewarded" for their work. This creates a broader context of wage growth and employment standards that Lidl's announcement contributes to significantly.
Lidl's continued investment in its workforce comes amid sustained growth across its British operations, with the company creating thousands of new jobs while implementing progressive employment policies. The supermarket's approach to staff remuneration represents a substantial commitment to maintaining competitive advantage through employee satisfaction and retention.
