Aldi UK has announced a second wage increase for its hourly paid store workers in just two months. So that its pay rates are in line with competitor Lidl GB. The german discount supermarket chain (which employs 45,000 workers in the UK) is Britain’s fourth-largest grocer (after tescos, sainsbury’s and also asda).
The Bank of England looks at all salaries when they decide what to do with interest rates. So, the pay rise could catch their attention. At the start of the month the Bank dropped the rate by a quarter point.
New Wage Structure Aligns with Market Trends
Last month, Aldi announced a pay rise for store assistants, increasing the minimum hourly wage to £12.71 nationwide and £14.00 in London, effective from March 1. However, in a new update, the retailer confirmed that workers will now receive at least £12.75 across the UK and £14.05 in London. This change aligns with a recent pay increase from Lidl GB, which was published on February 10. Also, these changes come before the UK government’s national minimum wage rise. In April, the least wage for most adults will be £12.21 an hour. Aldi promised a further raise in wages, possible in September, taking the hourly rate to £12.85 nationally and £14.16 in London. Unlike a lot of other supermarkets, Aldi is still giving paid breaks.
Rising Pay Reflects Strong Job Market
According to recent official data, British wage growth accelerated in late 2024. This trend indicates a stable job market, despite the overall weakness in the economy. The Bank of England isn’t likely to cut interest rates anytime soon due to wage inflation.
Other big companies, with Sainsbury’s and Costa Coffee, have also given pay rises above inflation. Sainsbury’s and Costa Coffee – among other firms – announced wage increases above inflation. The Bank of England may not cut interest rates any time soon as there is still wage inflation.
