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Last week, Aldi announced a pay increase for its store assistants, raising their hourly rate to at least £13.02 nationwide, making it the first supermarket in the UK to surpass the £13 mark. Within the M25, pay will start at £14.35 per hour, increasing to £14.66 with length of service. All employees, regardless of age, will receive the same minimum rate — significantly higher than the new National Living Wage of £12.21.
This move builds on Aldi’s existing policy of paid breaks, valued at approximately £1,425 per year for the average store colleague, further cementing its position as a leader in pay and working conditions.
The advantages of Aldi’s approach
Offering higher pay can provide clear benefits for a business, including:
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Attracting and retaining staff – competitive pay helps reduce turnover, saving recruitment and training costs.
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Improving productivity – well-compensated employees are often more motivated, which can enhance customer service and overall store performance.
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Enhancing brand reputation – being known as an employer that values its workforce supports recruitment, customer loyalty, and wider public perception.
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Ensuring consistency – paying all staff the same minimum rate regardless of age promotes fairness and fosters a stronger workplace culture.
Possible challenges
Not all businesses are able to match Aldi’s scale and financial resources. Many smaller companies may struggle to absorb higher pay due to limited margins or purchasing power.
As major employers increase wages, staff in smaller businesses may expect similar rises, placing additional pressure on those businesses to adjust pay rates.
Key takeaways for businesses
Aldi’s decision highlights how pay can be used strategically — not merely as a cost, but as an investment in employees and overall performance. For smaller businesses, the lesson is less about competing directly on pay and more about identifying sustainable ways to reward staff, whether through competitive wages, fair contracts, or additional benefits that support recruitment and retention.
