Lidl has already beaten the big four supermarkets on price. Now, the German discounter also plans to trump them on employee benefits, after revealing that it will pay its staff above the living wage from October.
The fast-growing chain announced yesterday that it will adopt the new higher rate it expects the Living Wage Foundation to set in November, one month ahead of the announcement.
It means that all Lidl UK staff will receive at least a £8.20 per hour, with London staff guaranteed £9.35 per hour. The move will cost Lidl £9m, with 53 per cent of Lidl UK’s 17,000 workforce benefitting from the rise.
It also comes after Ikea and Oliver Bonas both pledged last month to pay the current living wage hourly rate of £7.85 in UK and £9.15 in London.
Lidl’s UK chief executive, Ronny Gottschlich, said:
“We recognise that every employee forms an integral part of team Lidl, and each individual’s contribution is valued. It’s therefore only right that we show our commitment, in the same way that the team commits to the business and our customers each and every day, by ensuring a wage that supports the cost of living.”
In July, George Osborne revealed a national living wage of £7.20 for workers aged over 25, to replace the £6.50 minimum wage from April 2016.
The wage hike has raised concerns among businesses, such as Morrisons, which warned the move could cost it “tens of millions of pounds”.
Fashion chain Next has said the wage hike will cost the business £27m each year, while Costa Coffee owner Whitbread warned it may have to raise some of its prices.
Recent pay hikes:
|Lidl||£8.20 per hour||October|
|Ikea||£7.85 per hour||April 2016|
|Oliver Bonas||£7.85 per hour||September|
|Sainsbury's||£7.36 per hour||September|