Lidl announced that it will increase its pay starting March 2013, making it the UK’s most-paying supermarket.
It will increase its minimum pay for employees outside London to £10.10 an hour, with rates of up to £11.40 for more experienced workers.
According to the supermarket, higher rates will be applied in capital.
The increase was also a recognition of “the dedication and hard work of frontline staff during the past 18 months of pandemic”.
Earlier this year, Morrisons became the first UK supermarket to pay at least £10 an hour.
“Entry-level wages will increase from £9.50 to £10.10 an hour outside of London and £10.85 to £11.30 within the M25 from March 2022, with colleagues earning up to £11.40 and £12.25 respectively, depending on length of service,” Lidl said.
The announcement comes after Tuesday’s official statistics showed that there are still a lot of vacant positions at employers, which is a problem in the restaurant and retail industries.
In October, the number of job vacancies reached a new record at 1.17million – nearly 400,000 more than prior to the pandemic.
Many employers face labour shortages in many areas of the economy. They have to raise pay and maintain staff.
Lidl’s expansion continues. Lidl currently operates more than 850 shops in Great Britain, and claims it is still working to expand that number to 1,000 stores by 2023.
The company clearly desires to be competitive in hourly wages. This will make it more competitive than its larger competitors, which have much higher wages to pay.
Lidl stated that the pay increase was more than 6 percent for certain employees. Lidl said that more than 21,000 employees would receive the benefits, which is roughly 80% of their staff.
By comparison, the UK’s minimum wage for workers over 23 is set to rise from its current level of £8.91 an hour to £9.50 from April 2022.
And earlier this week, the Real Living Wage, paid by almost 9,000 employers throughout the country, went up from £9.50 to £9.90 an hour.
As for Lidl’s rivals, the latest available data suggests Tesco and Aldi currently pay £9.55 an hour, while Sainsbury’s, Waitrose and the Co-op pay £9.50 and Asda pays £9.18.
Lidl said its latest pay rise would cost it £18m and described it as part of its UK investment plan.
Nan Gibson, Lidl’s chief HR officer told BBC that they don’t expect customers to pay more for the product.
It was “very difficult” at the moment to hire staff. She added: “We compete for talent with all other retailers and even other industries.”
Ms Gibson explained that Lidl’s raise in salary was meant to both retain current staff as much as possible, but also to recruit new employees.
It also stated its intention to open 1,000 UK stores by 2023.
Christian Härtnagel, chief executive at Lidl GB, said: “We have ambitious plans to grow our business across Great Britain, and to do that, we need to ensure we attract and look after the best talent at every level of our business.”
Share Your Comment Below