Aldi’s UK stores have announced a second wage increase for their hourly-paid staff in as many months, covering over 28,000 employees. The move surpasses the latest pay adjustment by rival Lidl GB, reflecting intense competition for retail workers.
The rise comes despite official figures showing the UK jobless rate hitting its highest level in over a decade outside of the pandemic. Analysts say this demonstrates that retailers are still actively seeking to attract and retain talent even as the broader labour market softens.
Starting April 1, Aldi UK store assistants outside London will earn a minimum of £13.50 ($18.27) per hour, with London-based staff receiving higher rates. This follows a previous adjustment in March that set wages at £13.35 per hour outside the capital.
Lidl GB responded by raising its hourly rates by 10 pence outside London, showing that competition between discount grocers remains fierce. Other major retailers, including John Lewis, Sainsbury’s, and Costa Coffee, have also provided annual pay increases above the rate of inflation, which stood at 3% in January.
The Bank of England is closely monitoring wage growth as it evaluates whether inflation pressures might allow for further reductions in interest rates.
With the national minimum wage set to rise by 4.1% to £12.71 per hour in April, some employers have voiced concerns that rising labour costs could push up consumer prices.
Industry observers note that despite a slowing economy, wage competition in retail remains strong, particularly for roles that directly interact with customers in stores. Aldi’s repeated pay increases are seen as a strategy to maintain staffing levels and service standards across its UK network.
