Aldi hands out second pay rise in year as rivals battle for staff

ALDI has increased workers’ pay by 10pc after handing them a second rise this year as the German discounter is boosted by shoppers attempting to avoid the cost of living squeeze.

The company, which has 970 stores across Britain, will raise pay for 26,000 store workers from September.

They will receive a minimum of £10.50 an hour nationwide and £11.95 in London – rises of 4pc and 3.5pc respectively.

It is the second increase this year after wages were raised from £9.55 to £10.10 nationally and from £11.07 to £11.55 in London in February. The two pay rises combined add 9.9pc to a worker’s wage nationally.

The pay rise is the latest sweeping the sector as supermarket rivals battle to attract and retain staff. Tesco, Sainsbury’s, Asda and Morrisons have all raised salaries this year.

It comes as more shoppers switch to discount supermarkets and trade down brands for own-label products in an effort to save money on their weekly shop.

Two thirds of UK shoppers visited an Aldi or Lidl in the 12 weeks to July 10 as soaring inflation squeezes household incomes, according to data from Kantar.

Sales at the two German supermarkets rose 11pc and 14pc respectively over the period, while sales at most rivals fell. Aldi is gaining market share and is close to replacing Morrisons as Britain’s fourth-largest supermarket chain.

Pay has become a contentious issue in the industry as the highest inflation in 40 years fuels demands from workers for wage increases.

Earlier this month, Sainsbury’s shareholders voted down a motion by campaign group Shareaction that would have forced it to pay all its workers the real living wage by July 2023.

The real living wage is currently £11.05 per hour in London and £9.90 per hour in the rest of the UK.

Meanwhile, Tesco won a legal battle against 42 warehouse workers over its use of so-called fire and rehire tactics.