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Lidl to increase minimum wage. Image courtesy of thefinancetimes.co.uk

Lidl to increase minimum wage

The budget supermarket’s minimum wage hike is set to cost the company £9 million.

The company has promised that the costly pay rises will not affect customers.

Following the recommendations by the Living Wage Foundation, Lidl says that it will be the first supermarket to introduce the increased minimum wage.

From October 1, Lidl’s minimum wage will rise to £8.20 an hour in England, Scotland and Wales, whilst being raised to a higher £9.35 an hour in London. The pay rise, that will cost the company £9m, will be worth £1,200 a year for over half of the company’s workforce.

More than just increasing the minimum wage to £8.20, Lidl has pledged to increase pay further if, in November, the Living Wage Foundation sets a higher rate than initially expected.

The company have announced the move amidst warnings from fellow companies that the introduction of the Governments National Living Wage next April could be passed on to customers in the form of increased product prices.

Both Next and the owner of Costa Coffee are amongst the high street chains who are against the policy, which will guarantee workers aged 25 and over will initially earn at least £7.20 an hour.

They are not alone in their concerns, and have been supported by John Cridland, the head of CBI ( a business lobby group). Cridland described the increased pay as a “gamble”.

A spokeswoman for Lidl has assured that it’s prices will not rise as a result of the increased minimum wage.

Chief executive of Lidl UK, Ronny Gottschlich, said: “We recognise that every employee forms an integral part of team Lidl, and each individual’s contribution is valued.

“It’s therefore only right that we show our commitment, in the same way that the team commit to the business and our customers each and every day, by ensuring a wage that supports the cost of living.”

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