Aldi Raises Wages for 28,000 Workers up to £13.95 an Hour Effective September 1

Discount supermarket giant Aldi has announced a significant pay rise for over 28,000 hourly-paid store assistants across the UK, reinforcing its position as the country's highest-paying supermarket.

Effective from 1 September 2025, the new minimum hourly rate will rise to £13.02, with experienced staff earning up to £13.95.

The increase comes just weeks after Aldi initially pledged to raise wages to £13.00 per hour, but the retailer has now added a further 2p to 'strengthen its commitment never to be beaten on pay.'

In London, where the cost of living is higher, store assistants will see their pay climb from £14.05 to £14.35, rising to £14.66 with length of service.

Giles Hurley, Chief Executive Officer of Aldi UK and Ireland, said: 'Our colleagues are at the heart of our success, and we're committed to ensuring they are fully rewarded for the outstanding work they do. This higher than planned pay rise is part of our promise to never be beaten on pay.'

Second Pay Rise in Two Months Amid Sector Competition

This marks the second pay increase Aldi staff have received in 2025, following a previous uplift in March. The move is widely seen as a response to rival Lidl's announcement of a fifth pay rise in two years, which will also see its entry-level hourly rate rise to £13 nationally from September.

Aldi's latest wage hike ensures it retains the top spot in the supermarket wage league, ahead of competitors such as Tesco, Sainsbury's, and Morrisons.

The UK's National Living Wage for workers aged 21 and over currently stands at £12.21, meaning Aldi's new rates exceed the government-mandated minimum by more than 80p per hour.

The Living Wage Foundation has set the 'real' Living Wage at £12.60 nationally, and £13.85 in London, making Aldi's new rates comfortably above both benchmarks.

Paid Breaks and Benefits Set Aldi Apart

In addition to competitive hourly rates, Aldi remains the only major UK retailer to offer paid breaks to all staff, a benefit valued at approximately £1,425 annually for the average store worker. The supermarket also provides 28 days of annual leave, a health cash plan, discounted gym and cinema access, and a comprehensive employee assistance programme.

Hurley added: 'Our colleagues are at the heart of our success, and we're committed to ensuring they are fully rewarded for the outstanding work they do. Today's higher-than-planned pay rise is part of our promise to never be beaten on pay.'

Aldi's commitment to staff welfare was recently recognised when it was named Employer of the Year at the Grocer Gold Awards, praised for its investment in training and focus on diversity and inclusion.

Industry Implications and Economic Context

The wage race between Aldi and Lidl reflects broader trends in the UK retail sector, where supermarkets are vying to attract and retain staff amid ongoing labour shortages and rising living costs. Aldi currently operates over 1,000 stores across the UK and continues to expand, with recruitment drives underway to support new openings.

The Bank of England is closely monitoring wage settlements as part of its strategy to manage inflation. While the UK jobs market has shown signs of weakening, wage growth remains robust, complicating decisions around interest rate cuts.

With Aldi's latest move, pressure may mount on other retailers to follow suit. Asda is set to increase its minimum wage to £12.60 from October, while Waitrose and Marks & Spencer currently pay £12.40 and £12.60 respectively.

A Strategic Investment in People

Aldi's decision to raise wages above expectations is not just a headline-grabbing move, but a strategic investment in its workforce. As the cost-of-living crisis continues to bite and talent competition intensifies, the supermarket's pledge to 'never be beaten on pay' sends a clear message to both employees and rivals.

Whether other retailers will respond with similar increases remains to be seen. For now, Aldi's 28,000 store assistants can look forward to a meaningful boost in their pay packets come September.