Lidl has raised its wages to bring them in line with the Living Wage Foundation rate of pay, making it the highest-paying supermarket in the UK.
The discount supermarket has lifted its entry-level wage from £8.45 to £8.75 per hour outside of London. Employees in London will have their hourly pay lifted from £9.75 to £10.20.
Read more: Lidl is creating 500 jobs in Peterborough
The pay rise, which will come into effect on 1 March 2018, will cost the firm more than £3.5m. More than 16,000 employees will benefit from the change.
However, Lidl has not formally accredited with the Living Wage Foundation, which would commit the firm to pay rises every year.
ShareAction's Clare Richards said that although the rise in wages was "good news", Lidl could still do more.
"The supermarket has still not made its way to official accreditation, which is the only public guarantee that its workers' pay will continue to keep pace with the future cost of living," she said.
"Currently no UK supermarket is accredited with the Living Wage Foundation and this leaves space for Lidl to formally demonstrate its leadership."
Christian Haertnagel, Lidl UK chief executive, said:
As the fastest growing supermarket our business is continuing to go from strength to strength, and it’s only right that we show our commitment to our colleagues in the same way that they commit to the business and our customers each and every day.