Aldi has announced it is raising the pay of thousands of staff to a level higher than the amount its competitor announced weeks ago.
From February, staff at the discount store will be paid at least £8.53 an hour and £9.75 if they are in London.
This follows an announcement in November by rivals Lidl that its staff outside London would all earn at least £8.45 an hour and those in the capital would earn at least £9.75.
Aldi said the latest increase meant it offered “market-leading rates of pay” and “reaffirms its position as the highest-paying supermarket employer in the UK”.
Aldi’s chief executive of its UK business, Matthew Barnes, said: “We recognise the valuable contribution that our thousands of store employees make every day.
“Their dedication and commitment is a key reason why Aldi is the UK’s fastest-growing supermarket.
“We employ the best people in retail and invest in their training to enable them to carry out a range of different roles in store.”
Aldi is the middle of a recruitment drive for 4,000 new staff as it seeks to expand from 700 to 1,000 stores in Britain by 2022.
Barnes added: “We remain committed to being the best supermarket employer in Britain.
“This means that we will continue to provide employees with rates of pay and benefits that are the highest in the supermarket sector.”
Aldi estimates 3,356 of its staff will benefit from the wage increase. It said it was one of the few supermarkets to still pay staff for breaks and said its new rate was among the highest in the sector.
It also exceeds the living wage of £8.45 an hour the Living Wage Foundation’s advocates.
The Government enforces a National Living Wage of £7.20 an hour for over-25s, which will rise to £7.50 in April.