Supermarket Lidl has said it will increase hourly pay for 28,000 workers next month before the minimum wage rise on April 1.
The German-owned store announced that starting next month, its new hourly rates will exceed the Government's updated National Living Wage (NLW) by over 50p, as introduced by Rachel Reeves last October.
Wages for entry-level employees will rise to £12.75 an hour across the UK, up from £12.40, and increase to £13.65 with length of service.
In London, new starters will see pay go up to £14 an hour, increasing to £14.35 with length of service.
Its new wages come ahead of the rise in the NLW for people aged 21 and over to £12.21 in April, up from £11.44 currently.
These increases will come before April's £25bn increase in employers' National Insurance contributions (NICs),GETTYThese increases will come before April's £25bn increase in employers' National Insurance contributions (NICs), which the Tories have said will "kill growth stone dead" and put "countless jobs at risk".
The primary rate of employer NICs will increase from 13.8 per cent to 15 per cent, and the minimum earnings to warrant these payments will fall from £9,100 to £5,000 a year.
As a result, rivals have had to announce job cuts to ensure they are not at a loss. For example, Sainsbury's is to lay off 3,000 staff due to what it said was a 'particularly challenging cost environment', despite the firm seeing bumper Christmas sales.
At the same time, Morrisons is to cut 200 staff roles in a major company shake-up of customer service, employee engagement and payroll.
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Lidl’s latest wage increase is part of a near-£15 million investment into pay, including increases for workers on annual salaries.
It employs more than 35,000 people in total and has more than 970 stores and 14 warehouses across the UK.
Stephanie Rogers, chief people officer at Lidl GB, commented: “More households than ever before are choosing to shop with us, making Lidl the fastest growing bricks-and-mortar supermarket for well over a year.
"This success is largely due to our hard-working colleagues, who each play an incredibly important role in delivering quality, affordable products to communities across the country. This pay increase is just one part of our commitment to creating a workplace where everyone feels valued.
“We’re proud to offer leading pay rates in the sector, while fostering a culture of opportunity and inclusion that helps our teams thrive.
"As we continue to grow, investing in our people remains at the heart of what we do, ensuring Lidl is not only a great place to shop but also a great place to work and grow a career.”
This update comes as Lidl GB is named one of the top employers in the country by the Top Employers Institute for the fourth consecutive year.
Globally, Lidl was also awarded the “X-Large Enterprise” for the first time and secured “Top Employer Europe” for the eighth time.
These increases will come before April's £25bn increase in employers' National Insurance contributions (NICs),
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Last month, German discounter Aldi also announced they would raise its minimum hourly rate to £12.71, up from £12.40 an hour currently.
Aldi's employees in and around London will see their hourly pay rise to at least £14, up from £13.65, meaning the two budget supermarkets sit ahead of its competitors for staff pay, even bettering upmarket shops like Waitrose and M&S.
But with staff cuts expected to continue across the industry, it is unclear if rivals will follow suit.
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