UK supermarket Aldi said that all 30,000 of its shop assistants will receive a wage raise as it raises its minimum hourly wages to reflect their contribution from 1 February, as supermarkets come under scrutiny over how much their workers earn.
A minimum hourly wage of £9.55 ($13) will be paid by Aldi nationwide, up from £9.40. Those operating inside the M25 in London would receive £ 11.07 an hour instead of £ 10.90.
It would be possible for those who have been employed for three years to earn up to £ 10.57. After two years, Londoners will gain up to £ 11.32.
I want to express my sincere thanks to every single Aldi colleague who stepped up when it counted and helped us succeed in our most important task of all, feeding the country," said Giles Hurley, CEO of Aldi UK."
"It has never been more important to ensure that during a challenging period for everyone, our colleagues are fully rewarded for their immense contribution," he said.
The new prices "are also boosted by the fact that Aldi is still one of the only UK supermarkets to pay for breaks taken during shifts, which means that Aldi colleagues remain the industry's best-paid," the company said in a statement.
"Aldi's minimum hourly pay rate for shop colleagues, based on an average six-hour shift, will be £ 10.11 when paid breaks are included," it said.
In appreciation of their efforts during the pandemic, it said, the pay raise follows bonuses given to store colleagues in April and December 2020.
In the United Kingdom, Aldi has over 900 stores and is aiming for 1,200 stores by 2025. This year, it expects to add more than 4,000 store-level workers.
The firm said its new minimum hourly rates surpass the proposed actual living wage rates of £ 9.50 an hour nationally and £ 10.85 an hour within the M25 by the Living Wage Foundation.
The news follows last week's Citizens UK study that said nearly half (45 percent) of all employees at major supermarkets, including Morrisons (MRW.L), Tesco (TSCO.L), Sainsbury's (SBRY.L), and Ocado (OCDO.L), paying their employees in April 2020 less than the real living wage.
The study said some 410,000 retail staff paid less than the actual living wage, which currently stands outside London at £ 9.50 per hour in the UK and within London at £ 10.85 per hour.
According to the Living Wage Foundation, the only UK wage rate voluntarily paid by 7,000 UK employers who believe their workers deserve a wage that meets daily needs, such as the weekly shop, is the true living wage.