Aldi's announcement sets a new benchmark in the competitive supermarket pay landscape. According to multiple reports, the German discounter has invested £42 million in colleague pay, and its CEO Giles Hurley stated that the latest increase confirms Aldi as the highest paying in the sector. The new rates apply from April 1, 2026, and include benefits such as paid breaks, which are worth around £1,500 a year for a typical store assistant, and 26 weeks of full maternity pay.
Lidl and Waitrose have followed with significant pay increases of their own. Lidl's pay will rise to £14.45 nationally and £15.30 within the M25 for staff with length of service, according to multiple reports. The company invested £29 million in its employment package. Waitrose, part of the John Lewis Partnership, awarded staff an above-inflation pay rise of 6.9% in 2026, following three consecutive years of bonus freezes, research shows. The rise represents a £108 million investment, and for specialist roles, pay will be £14.31 nationally and £15.98 within the M25, according to multiple reports. Helen Webb, Chief People Officer of John Lewis Partnership, said that partners are the heartbeat of the business.
Tesco, Sainsbury's, M&S, and Co-op have also announced pay rises. Tesco invested over £200 million in pay, according to multiple reports, and research indicates it will introduce a 5.1% pay rise for its hourly-paid staff from the end of March 2026. However, there is a contradiction in the reported new rates: some sources say Tesco increased hourly pay to £13.28 nationally and £14.55 within the M25, while others say it rose to £13.35 nationally and £14.71 within the M25 from March 2026. The exact effective date for Tesco's pay rise also remains unclear. Sainsbury's pay rise is 5%, according to multiple reports. M&S invested £70 million in pay, with a 6.4% increase, and research shows that hourly pay for customer assistants will be at least £13.41 nationally and £14.74 within the M25. Co-op's pay rise is 3.5%, according to multiple reports.
Asda and Morrisons lag behind with lower pay rates. Asda pays £12.60 an hour nationally and £13.82 in London as of October 2025, according to multiple reports, and its total investment in retail pay since 2021 reaches £575 million. Research indicates that Asda's pay rise impacts 110,000 hourly-paid colleagues and represents a 4% uplift. Morrisons pays £12.21 nationally and £13.06 in London, according to multiple reports. It is not yet known whether Morrisons will announce a new rate for 2026.
The National Living Wage increased to £12.71 per hour from April 2026, according to multiple reports, though there is a contradiction: some sources state it rose to £12.21 per hour for workers aged 21 and over. The difference of 50p is significant for understanding the baseline wage and comparing supermarket pay offers. The industry context shows that supermarkets are competing fiercely for staff amid a tight labour market and rising cost of living.
Several uncertainties remain in the pay landscape. The exact effective date for Tesco's pay rise is not confirmed, and the correct National Living Wage figure for April 2026 is disputed. It is also unclear whether other supermarkets, such as Morrisons, will announce new rates beyond those listed, and how these pay rises compare to inflation and cost of living increases. The competitive dynamics suggest further announcements may follow as retailers seek to attract and retain workers.