Lidl is to increase its pay to £12.75 per hour nationally, making its colleagues the best-paid in the supermarket sector.

The discounter’s market-leading pay increase will impact over 28,000 of its workers and marks a £15m investment, due to come into effect in March 2025.

Entry-level pay will now rise to 12.75 nationally, up from £12.40 and increasing to £13.65 with length of service. Meanwhile, in London, new starters will see pay rates go up to £14.00, rising to £14.35 over time.

The announcement of the new hourly rates comes ahead of the government’s updated national living wage, (NLW), placing Lidl workers 50p per hour ahead of the recommended NLW level. The new wages also place Lidl ahead of the Living Wage Foundation’s new Real Living Wage, which is being implemented in April.

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Lidl chief people officer Stephanie Rogers said: “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.”

The pay increase also places Lidl ahead of rival discounter Aldi, which last month unveiled its store assistant wages are set to rise to £12.71 nationally, and to £14 within the M25. The grocery retailer, which last year vowed to never be beaten on pay, added that these rates would rise to £13.62 and £14.23 respectively, based on length of service.

Earlier in the month, supermarket giant Sainsbury’s also entered the wage-war, announcing its staff will move to £12.45 per hour, or £13.70 for those in London, with a further increase to £12.60 per hour in August, or £13.85.