Supermarket Aldi has announced a pay rise for 2024 that could make it the first retailer of its kind to pay all store and warehouse colleagues at least £12.00 an hour nationally.
The new rates will take effect from 1 February 2024. Within the M25 in the south-east of England the rate will be £13.55.
Pay rates rise further for store assistants to £12.95 nationally, and £13.85 within the M25, based on length of service.
In addition to the rise for hourly paid colleagues, all of Aldi’s salaried employees will also gain a pay increase.
Pay in the retail sector
The supermarket claims to be the only retailer of its type to pay workers for breaks in shifts, worth more than an additional £900 for store workers on average.
The new minimum rate means that Aldi is the first supermarket to offer rates in line with the real Living Wage that was set by the Living Wage Foundation in October this year.
Giles Hurley, chief executive officer of Aldi UK and Ireland, said: “Just as we promise to provide the best value to our customers, we are also committed to being the highest-paying supermarket in the sector. We believe our colleagues are the best in the sector and they play a huge part in making Aldi what it is today.”
In September Lidl became the highest paying supermarket in the sector, after staff members benefited from their third pay rise of the year. Store and warehouse staff working outside the M25 receive an hourly pay rise of £11.40 from £11, rising to £12.30 with length of service. Wages for workers inside the M25 will nudge up to £12.85 from £11.95, rising to £13.15.
Other supermarket giants, such as Sainsbury’s and Tesco, pay workers a minimum of around £11 an hour. It remains to be seen how other supermarkets will respond to Aldi’s move.
Of major retailers Ikea has also announced pay rates for 2024 that align with the real Living Wage.
Aldi is the UK’s fourth-largest supermarket and has more than 1,000 stores, 11 regional distribution centres and 40,000 employees across the UK.