Published by Global Banking & Finance Review®
Posted on August 29, 2025
2 min readLast updated: January 22, 2026
Add as preferred source on GoogleAldi UK raises wages again, surpassing Lidl, as the Bank of England monitors wage trends amid inflation concerns.
LONDON (Reuters) -The British arm of German discount supermarket Aldi has edged up its pay for over 28,000 hourly paid workers for the second time in two months, leapfrogging an increase by rival Lidl GB.
Aldi said on Friday it would pay 13.02 pounds ($17.59) an hour "to maintain its position as sector leader." The group also provides paid breaks.
Earlier this month, Lidl gave its workers a fifth pay rise in two years, upping its entry-level hourly rate to 13 pounds nationally from September 1, rising to 13.95 pounds depending on length of service.
Aldi had announced in July that it would pay 13 pounds an hour from September 1.
Workers in London at both discounters will receive higher rates.
The Bank of England is keeping a close eye on wage settlements as it assesses whether inflation pressures will allow it to lower interest rates further.
Official data published on August 12 showed Britain's jobs market weakened again with payrolls falling for a sixth month. However, wage growth stayed strong, underscoring why the BoE is cutting borrowing costs only cautiously.
Grocery industry leader Tesco will pay a minimum of 12.64 pounds an hour from September 1.
Britain's government-mandated main minimum wage is currently 12.21 pounds an hour. The body which effectively sets the rate has said it will probably need to rise to 12.71 pounds next year to keep up with the government's goal for it to match two-thirds of median earnings.
($1 = 0.7402 pounds)
(Reporting by James DaveyEditing by William Schomberg)
Wage growth refers to the increase in the average pay of workers over a specific period. It is often measured as a percentage increase in hourly wages.
The Bank of England is the central bank of the United Kingdom, responsible for issuing currency, managing monetary policy, and overseeing financial stability.
The grocery sector includes businesses that sell food and other household products. It encompasses supermarkets, convenience stores, and other retail outlets.
A pay rise is an increase in an employee's salary or hourly wage. It can be awarded for various reasons, including performance, inflation adjustments, or market conditions.
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