Aldi Implements 2p Pay Increase, Solidifying Its Market Position

Thousands of Aldi employees in the UK are set to receive a larger-than-expected pay increase starting on September 1, 2025. The discount supermarket has introduced the ‘2p rule’, which will raise the minimum hourly wage for store assistants to £13.02 (approximately $16.80). This new rate positions Aldi as the highest-paying supermarket in the UK, slightly ahead of Lidl, which recently announced a minimum wage of £13 (approximately $16.77) per hour.

Details of the ‘2p Rule’

The ‘2p rule’ signifies Aldi’s commitment to maintaining a competitive edge in employee compensation. Initially, the supermarket planned to increase the hourly wage for store assistants from £12.75 (approximately $16.45) to £13.00 (approximately $16.77). However, in a strategic adjustment, Aldi added an additional 2p, ensuring that its pay rate remains marginally above that of Lidl. This adjustment allows the wage for long-serving staff to rise to £13.95 (approximately $18.02), while employees in London could see wages increase to as much as £14.66 (approximately $18.94).

Aldi’s decision underscores its policy of never falling behind competitors in terms of pay. The revised wage will benefit more than 28,000 hourly paid store assistants across the UK, who will begin to see the impact of this pay rise in their salaries come September.

Rationale Behind the Increased Wages

Aldi’s pay increase aligns with the company’s long-term strategy to position itself as the best-paying supermarket employer in the UK. CEO Giles Hurley emphasized that the company’s success is attributed to its workforce, stating that the pay hike reflects their vital contributions. By slightly adjusting its wage rates, Aldi strengthens its competitive position against retailers such as Lidl, which have also announced similar pay increases effective in the same timeframe.

This move is part of a broader trend in the retail sector, where supermarkets are increasingly raising wages to attract and retain employees amid ongoing labour shortages and rising living costs. The pressure on retailers to provide more competitive compensation packages is evident as they navigate these economic challenges.

In addition to the pay rise, Aldi remains the only UK supermarket to offer fully paid breaks for all employees, translating to an approximate value of £1,425 (around $1,841) annually for full-time staff. This benefit further enhances Aldi’s appeal as a desirable employer.

Aldi’s Ongoing Recruitment Efforts

Alongside the wage increase, Aldi is actively recruiting for both full-time and part-time positions across its UK stores. This recruitment drive comes as the supermarket chain embarks on an expansion programme that includes the opening of 23 new stores, with ten already confirmed and more expected to launch by the end of 2025. This growth is supported by a substantial investment of £650 million (approximately $840 million) in Aldi’s UK operations, which also includes plans to refurbish 35 existing supermarkets.

The introduction of the ‘2p rule’ will officially take effect on September 1, 2025, and while the increase may seem modest, it reinforces Aldi’s strategy to maintain its status as the leading employer in the UK retail sector. The decision sets a precedent for ongoing wage discussions among supermarkets as they compete for talent in a challenging economic climate.