Aldi UK workers get second pay rise in two months

LONDON (Reuters) - The UK arm of German discount supermarket Aldi is to give its hourly paid store workers a second pay rise in two months so it can match the increased level offered by rival Lidl GB.

The latest increase from Aldi, which employs 45,000 and is Britain's fourth largest grocer after Tesco, Sainsbury's and Asda, will likely be noted by the Bank of England, which is keeping a close eye on wage settlements as it assesses further moves in interest rates after cutting by a quarter-point earlier this month.

Having announced last month a pay rise for all store assistants to at least 12.71 pounds ($16.07) an hour nationally and 14.0 pounds in London from March 1, Aldi said on Friday it would now pay a minimum of 12.75 pounds nationally and 14.05 pounds in London - matching the national rate of Lidl GB, which announced an above pay inflation pay rise on February 10.

The new rates come ahead of the UK government's 6.7% hike in the national minimum wage to 12.21 pounds for most adults that will kick in from April.

Aldi said a further increase to 12.85 per hour nationally and 14.16 pounds in London will be paid from September. Unlike other supermarkets, Aldi also offers paid breaks.

British pay growth accelerated in late 2024, according to official data, published on Tuesday, that suggested the jobs market was holding up and underscored why the Bank of England has been cautious about cutting interest rates despite a weak overall economy.

Sainsbury's and Costa Coffee have also recently announced above-inflation pay rises.

($1 = 0.7910 pounds)

(Reporting by James Davey; editing by David Evans)