Lidl GB has unveiled a substantial £37 million investment in employee remuneration. This move elevates the company to the position of offering the highest hourly pay rates in the industry for its store and warehouse staff. The announcement comes on the heels of a remarkably successful Christmas trading period.
Effective from March 1st, the hourly rates for Lidl GB’s entry-level positions will experience a notable increase. For those located outside of the M25, rates will jump from £11.40 to £12.00, with potential growth to £13.00 as tenure increases. Within the M25 area, wages will rise from £12.85 to £13.55, eventually reaching £13.85. These new rates are up to 17% higher than the forthcoming National Minimum Wage set for April.
In addition to the pay hikes for hourly workers, the investment also encompasses salary increments for other salaried colleagues across the company. Lidl GB is further enhancing its compensation package with a new bank holiday premium of £2.00 per hour and an increased nightshift premium, which rises to £3.50 per hour. Additionally, the applicable timeframe for this premium has been extended by an hour.
This latest investment brings Lidl GB’s total expenditure on employee compensation over the past year to nearly £60 million. Unique among discount retailers, Lidl GB also offers a 10% employee discount, valued at up to £600 per person annually, representing an additional £20 million investment each year.
Lidl GB’s CEO, Ryan McDonnell, emphasized the critical role of the company’s workforce in achieving recent market share gains and record trading figures during the festive season. Sales escalated by 12% year-on-year in the four weeks leading up to December 24, 2023. McDonnell stated, “Customers are switching to Lidl from every other supermarket, and it’s our colleagues’ commitment and performance that is making this happen. It’s only right, therefore, that we thank them for their incredible work and reward them for their efforts. Investing in our people is vital as we set our sights further on increasing our market share and bringing our high quality, great value products to even more households.”
Stephanie Rogers, Lidl GB’s Chief Human Resources Officer, also highlighted the importance of competitive pay and a positive work environment in the company’s long-term strategy. She remarked, “Offering competitive pay and being a great place to work for our colleagues is crucial to our success. This has always been central to our strategy, ever since opening our doors almost 30 years ago. I’m pleased that we are continuing to hold ourselves to our high standards and to reward colleagues with the highest rates of pay in the sector.”
The pay increase is part of a broader package of employee benefits at Lidl GB, which includes sector-leading Maternity and Adoption pay (28 weeks), introduced this month, along with paid leave for fertility treatment and pregnancy loss. Other benefits encompass enhanced holiday entitlement, life assurance, and optional health and dental insurance. This comprehensive approach to employee welfare underscores Lidl GB’s commitment to its workforce, reinforcing its standing as an employer of choice in the retail industry.
