Supermarket chain Lidl GB will increase pay for thousands of employees from 1 September 2025 as the employer confirmed its fifth wage uplift in just two years, which it said takes its total investment in wages since 2023 to more than £70 million.
From 1 September, entry-level pay will rise from £12.75 to £13 an hour nationally, increasing to £13.95 for those with longer service. In London, hourly rates will move from £14 to £14.35, rising to £14.65 with length of service. The rates ensure the employer continues to pay above both the real living wage and the London living wage.
The employer said this latest pay raise reinforces its position as one of Britain’s highest-paying supermarkets and forms part of its wider strategy to attract and retain talent in a competitive labour market.
The pay deal applies to a broad range of hourly paid roles, including customer assistants, shift managers, warehouse operatives and cleaners, and covers the company’s entire network of over 980 stores and 14 distribution centres.
Retention, recruitment and recognition
Stephanie Rogers, chief people officer at Lidl GB, said the decision reflects the company’s commitment to recognising the role of its people in driving growth.
“Over the last two years, we’ve held our spot as the fastest-growing bricks-and-mortar supermarket. This continued success is made possible because of the ongoing efforts of our colleagues… In recognition of their contribution, we continue to ensure we are market-leading on pay.”
The news comes as competition among UK retailers to secure skilled staff heats up. With low unemployment and cost-of-living pressures affecting workers across the country, pay continues to be a decisive factor in both recruitment and retention strategies.
In addition to the pay rise, Lidl offers a 10 percent in-store discount to all colleagues, along with a range of other benefits. .
Sustained growth
Since entering the British market in 1994, Lidl has grown to now employ more than 35,000 people. The company’s continued sales growth has allowed it to repeatedly increase wages over the last two years while maintaining a low-cost retail model.
Regular, above-market wage reviews can boost morale and loyalty, but require careful workforce planning, cost modelling and alignment with productivity goals.
With the new rates taking effect in September, Lidl’s HR and operations teams will be focused on communicating the changes across its large, geographically dispersed workforce and ensuring payroll systems are updated smoothly.
