In response to the intensifying battle for staff and in anticipation of higher minimum wage levels, Aldi has announced its second pay rise of 2024.
This strategic move positions Aldi as a leader in employee compensation within the UK’s supermarket landscape.
Effective from 1 June, Aldi’s minimum hourly rate for store workers will rise to £12.40 nationwide, impacting over 28,000 store colleagues.
This increase comes ahead of the compulsory National Living Wage, which is set to climb to £11.44 per hour in April, now encompassing 21 and 22-year-olds for the first time.
Aldi and employee satisfaction
Aldi, currently the UK’s fourth-largest supermarket chain boasting over 1,000 stores and 45,000 staff members, emphasises its commitment to fair compensation and employee satisfaction.
For store assistants and deputy store managers outside the M25, the new minimum hourly rate will rise from £12 to £12.40, while within the M25, pay will increase from £13.55 to £13.65 per hour.
New rates surpass Real Living Wage
These new rates surpass the Real Living Wage, an unofficial hourly rate overseen by the Living Wage Foundation charity. The Real Living Wage currently stands at £13.15 per hour in the capital and £12 per hour in the rest of the UK.
Aldi’s move follows a recent trend among major supermarket chains, including Tesco, Sainsbury’s, Asda, and M&S, all announcing pay rises in the past few weeks. The Bank of England closely monitors these developments, concerned about the potential impact on inflationary pressures in the economy. Rapidly rising pay rates may influence the Bank’s decisions on interest rates.
Aldi reports that its latest wage increase represents a total investment of £79 million in employee compensation for the year. Additionally, the supermarket giant plans to create 5,500 new jobs in the UK this year, further solidifying its commitment to growth and market expansion.
Amelia Brand is the Editor for HRreview, and host of the HR in Review podcast series. With a Master’s degree in Legal and Political Theory, her particular interests within HR include employment law, DE&I, and wellbeing within the workplace. Prior to working with HRreview, Amelia was Sub-Editor of a magazine, and Editor of the Environmental Justice Project at University College London, writing and overseeing articles into UCL’s weekly newsletter. Her previous academic work has focused on philosophy, politics and law, with a special focus on how artificial intelligence will feature in the future.
