Aldi leads supermarket pay race with record increases

Aldi has announced a record pay rise for its store assistants, cementing its position as the highest paying supermarket in the UK, according to multiple reports. From April 1, 2026, 28,000 Aldi workers will receive £13.50 per hour nationally and £14.88 within the M25. The company invested £42 million in colleague pay this year, as reported by several media outlets. Giles Hurley, CEO of Aldi UK and Ireland, said in a press release: "Our colleagues work incredibly hard to deliver exceptional value for our customers, and we're rewarding that dedication with the highest pay in the sector."

Lidl has followed closely, increasing entry-level wages to £13.45 nationally and £14.80 in London from March 1, 2026, according to multiple reports. The discounter invested £29 million into its employment package and doubled paternity leave, as reported by several media outlets. M&S will raise hourly pay to a minimum of £13.41 from April 1, 2026, with customer assistants receiving at least £13.41 nationally and £14.74 within the M25, according to research. M&S invested £70 million in pay, a 6.4% increase, as reported by multiple sources. Stuart Machin, M&S CEO, said in a press release: "This is an inflation-beating pay award."

Other major retailers have also announced pay rises amid an industry-wide trend. Tesco invested more than £200 million in pay, according to multiple reports, though the exact new hourly rates are disputed: some sources say £13.35 nationally and £14.71 in London, while others report £13.28 nationally and £14.55 in London. Co-op introduced a new £13.04 hourly wage nationally and £14.29 within the M25 from April 2026, as reported by multiple media outlets. Waitrose pay rises to £14.31 nationally and £15.98 in London for enhanced skills roles, according to multiple reports. Asda's pay rise impacts 110,000 hourly-paid colleagues and is worth more than £80 million, according to research. John Lewis Partnership awarded its staff an above inflation pay rise of 6.9% in 2026, following three consecutive years of bonus freezes, and set aside £108 million to fund pay rises for the majority of its 69,000 partners, according to research. Helen Webb, John Lewis Partnership chief people officer, said in a press release: "Our partners are the heartbeat of our business. This £108 million investment is about putting more money into their pockets month-in, month-out."

The National Living Wage increased to £12.21 per hour for workers aged 21 and over from April 2026, according to multiple reports, setting a baseline for the sector. All the announced pay rises exceed this statutory minimum.

Aldi also extended maternity pay to 26 weeks at full pay, as reported by multiple media outlets. It remains the only supermarket to provide paid breaks, worth approximately £1,500 annually for a typical store assistant, according to two sources.

Several uncertainties remain in the supermarket pay landscape. The exact effective dates for each supermarket's pay rise are not always clear, and it is unknown whether other retailers such as Morrisons or Iceland have announced pay rises for 2026. The specific eligibility criteria for enhanced pay rates, such as length of service or skills, have not been disclosed by all companies. Additionally, how these pay rises compare to the actual cost of living and inflation rates is not fully addressed in the announcements.