Aldi's announcement on Tuesday confirmed that from April 1, 2026, store assistants will receive £13.50 per hour nationally and £14.88 within the M25, cementing its position as the highest paying supermarket in the UK, according to multiple reports. The German discounter invested £42 million in colleague pay, as reported by several media outlets. Giles Hurley, chief executive of Aldi, said the increase confirms Aldi as the highest paying in the sector. The new rates surpass those of competitors and reflect a broader trend of rising wages in the grocery industry.
Lidl, another German discounter, is close behind with pay rising to £14.45 nationally and £15.30 in London for staff with experience, according to multiple reports. Lidl invested £29 million in its employment package, which also includes doubled paternity leave. Tesco, the UK's largest supermarket, increased hourly pay to £13.28 nationally and £14.55 in London, investing over £200 million in pay, as reported by several media outlets. Tesco's pay rise is 5.1%, according to multiple reports. However, some sources have reported Tesco's new rates as £13.35 nationally and £14.71 in London from March 2026, creating a discrepancy that could confuse readers about the exact offer. The higher figure may include additional increments or reflect a different effective date.
Marks & Spencer invested £70 million in pay, with a 6.4% increase, according to multiple reports. M&S hourly pay for customer assistants will be at least £13.41 nationally and £14.74 within the M25, according to research. John Lewis Partnership invested £108 million in pay, awarding staff an above-inflation pay rise of 6.9% in 2026, according to research. Helen Webb, chief people officer of John Lewis Partnership, said partners are the heartbeat of the business. The investments underscore the intense competition for retail staff amid a tight labour market.
Sainsbury's, Co-op, Asda, and Morrisons have offered more modest increases. Sainsbury's pay rise is 5%, according to multiple reports. Co-op introduced hourly pay of £13.04 nationally and £14.29 in London from April 2026, a 3.5% rise, as reported by several media outlets. Asda's pay rise is 4% above inflation, and the supermarket has invested £575 million in retail pay since 2021, according to multiple reports. Asda pays £12.60 an hour as of October 2025, according to multiple reports. Morrisons pays £12.21 nationally and £13.06 in London, according to multiple reports.
The National Living Wage increased to £12.21 per hour for workers aged 21 and over from April 2026, as reported by multiple media outlets. This sets a baseline that all supermarkets must meet, but many are offering significantly more to attract and retain staff. The pay rises come amid ongoing cost-of-living pressures and a competitive labour market.
Beyond base pay, supermarkets are enhancing benefits. Aldi extended maternity pay to 26 weeks at full pay, according to multiple reports, and provides paid breaks for all staff, worth approximately £1,500 annually for a typical store assistant, as reported by several media outlets. Lidl doubled paternity leave, according to multiple reports. Tesco will introduce a domestic abuse policy with up to three days' paid leave, as reported by several media outlets. These benefits add to the overall compensation packages and are designed to improve staff retention.
Several uncertainties remain. The specific effective dates for Tesco's pay rise are unclear, with some sources citing March 2026 and others April 2026. The exact maximum pay with length of service for Aldi is also disputed, with figures ranging from £14.30 to £14.47 nationally and £15.03 to £15.20 within the M25. It is not known whether other supermarkets such as Iceland or Spar have announced pay rises for 2026. The exact London rate for M&S customer assistants is also uncertain, with some sources citing £14.74 and others not specifying. How these pay rises compare to inflation and the cost of living in 2026 remains to be seen.