Key Takeaways
- Aldi pay rise raises store staff wages to £13/hour nationwide, £14.33 inside the M25.
- The move widens Aldi’s wage lead amid fierce sector competition.
- It exceeds both the national minimum and Real Living Wage benchmarks.
- Competitors including Lidl, Tesco, and Sainsbury’s have issued recent wage hikes but fall short of Aldi’s rates.
- Retail analysts question long-term affordability for mid-sized grocers.
When it comes to compensation, the Aldi pay rise is setting the tone for Britain’s supermarket sector. Beginning September 1, the discount grocer will increase its minimum hourly rate to £13 across the UK, rising to £14.33 for London-area workers. The adjustment ensures Aldi remains the country’s highest-paying supermarket.
The Aldi pay rise places its wage floor far above the government’s £12.21 minimum and also tops the Living Wage Foundation’s £12.60 standard. The move is part of a broader pay escalation gripping UK grocery chains as they compete for labour in a tight market.
“Our people are the driving force behind our success,” said Aldi UK and Ireland CEO Giles Hurley. “We’re proud to remain the UK’s highest-paying supermarket.”
Sector Impact: Aldi Pay Rise Forces Rivals’ Hand
While other chains have responded—Lidl now pays £12.75, Tesco is raising its base to £12.64, and Sainsbury’s to £12.60—none have matched the national £13 threshold set by the Aldi pay rise.
“This is a clear market signal,” said Clive Black of Shore Capital. “Aldi isn’t just reacting to labour trends—it’s actively shaping them.”
Within London’s M25, the new base rate of £14.33/hour beats the Real Living Wage for London (£13.85). With experience, wages at Aldi can reach £14.64/hour, reinforcing the company’s aggressive compensation stance.
UK Supermarket Pay Rates (as of Sep 2025)
| Supermarket | Base Pay (UK) | Base Pay (London) | Top Pay (UK) | Top Pay (London) |
|---|---|---|---|---|
| Aldi | £13.00 | £14.33 | £13.93 | £14.64 |
| Lidl | £12.75 | ~£13.55 | — | — |
| Tesco | £12.64 | N/A | — | — |
| Sainsbury’s | £12.60 | N/A | — | — |
| National Min Wage | £12.21 | N/A | — | — |
| Real Living Wage | £12.60 | £13.85 | — | — |
Economics of the Aldi Pay Rise
Retailers are grappling with mounting cost pressures. The British Retail Consortium estimates the government’s minimum wage hike will add £2.73 billion annually in labour costs. Aldi’s decision to move ahead of both government and voluntary benchmarks adds further strain on margins across the sector.
“These kinds of pay increases are manageable for Aldi because of its streamlined model,” said retail analyst Diane Wehrle. “Others may need to offset costs by cutting hours or delaying investments.”
Dunelm CEO Nick Wilkinson views it differently: “Higher wages put more money into customers’ pockets, which can lift demand across the board.”
As the Aldi pay rise takes effect, rivals may be compelled to follow—not just to stay competitive, but to keep shelves staffed and operational standards intact.
