Lidl is increasing pay for hourly-paid colleagues from £12 to a minimum of £12.40 across the country, marking the third pay rise in 12 months.

In London, colleagues will see entry level pay increase to £13.65, up from £13.55, with the new base rates equal to the best hourly pay in the sector.

Hourly pay rates for colleagues will also increase with length of service, reaching £13 nationally and £14 within London.

The latest move, which will apply from 1 June, represents an investment of over £2.5m, following a £37m investment in March, as well as an £8m raise in September 2023, bringing the total over the past 12 months to nearly £50m.

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Lidl BG chief human resources officer Stephanie Rogers said: “The critical role that our colleagues play in driving our growth is always front of mind for us, which is why we’re committed to offering extremely competitive pay alongside a raft of other benefits.

“We want to continue to support and strengthen the teams that run our stores and warehouses every day, whilst attracting the best new talent. This latest investment helps us to do just that”.

Lidl GB CEO Ryan McDonnell added: “As we continue to expand, we are welcoming more customers and attracting more colleagues into the business every day. It’s absolutely right, therefore, that we continue to offer industry-leading pay”.

It comes as Lidl has plans to open hundreds of new stores across the country this year, as it reaches its 30th anniversary in the UK.

The discounter will open new sites in Bristol, Birmingham and Berwick, while new London locations include Wandsworth, Fulham, Hoxton and Canning Town.