Lidl raises pay ahead of minimum wage rise
Published On Feb 10, 2025, 7:20 AM
Lidl has announced a pay increase for around 28,000 employees in the UK, lifting the entry-level hourly wage from £12.40 to £12.75. This move positions Lidl’s wages above those of competitors like Sainsbury's and Aldi, in light of a forthcoming rise in the national minimum wage to £12.21. Lidl’s pay adjustments are seen as a strategy to attract and retain staff amid rising costs that are causing many retailers to downsize or increase prices. Other retailers are also adjusting pay rates, but uncertainty regarding job security remains high in the sector due to an increase in National Insurance contributions and job cuts at some other chains.
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Lidl's decision to raise wages could strengthen its brand and employee morale, likely enhancing customer experience and loyalty. This competitive edge in employee compensation may help Lidl to gain market share from competitors facing layoffs and uncertainty. However, the overall economic environment remains challenging for retailers due to potential job cuts and rising operational costs.
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