Lidl Increases Nationwide Pay Rates and Extends Full Paid Paternity Leave for Thousands of Employees Working Across England Scotland and Wales

If it feels like supermarket wages keep climbing every few months, you’re not imagining it.

Lidl has just announced another major boost for its staff, and this one marks the seventh pay rise in just three years.

The German discount chain says the latest increase restores its position as Britain’s highest-paying supermarket, at a time when competition for workers is intense and the cost of living remains a major concern for many families.

New Hourly Rates Start in March

From March 1, Lidl’s entry-level hourly pay across the UK will rise to £13.45 an hour.

Workers who stay longer with the company will be able to earn up to £14.45, depending on their length of service.

London employees will see even higher rates.

New starter pay in the capital will increase from £14.35 to £14.80, eventually reaching £15.30 with experience.

Lidl says this latest wage package represents a £29 million investment in its workforce.

A Move Ahead of the Minimum Wage Increase

The announcement comes just weeks before the national minimum wage rises again.

From April 1, eligible workers aged 21 and over will see the legal minimum climb by 50p, moving from £12.21 to £12.71 per hour.

Lidl’s new rates will remain comfortably above that threshold, helping the company stand out in an industry where pay increases often arrive only when legally required.

Doubling Paid Paternity Leave in a Big Step Forward

Pay isn’t the only headline. Lidl also revealed a major upgrade to family benefits by doubling paid paternity leave.

Fathers and partners will now be entitled to four weeks of full pay instead of two.

After five years of service, this will rise further to eight weeks of fully paid leave.

That is one of the most generous paternity packages currently offered in the UK supermarket sector, and Lidl has framed it as part of a broader push toward workplace equality.

Lidl Says Staff Are the Backbone of Its Growth

Stephanie Rogers, Lidl’s Chief People Officer, made it clear the company sees these investments as essential.

She described employees as the backbone of the business and said Lidl’s success depends directly on rewarding staff properly.

She also pointed to the company’s rapid growth across Great Britain as a reason Lidl can continue raising wages while creating thousands of new jobs.

How Lidl Now Compares With Aldi

The pay battle between Lidl and Aldi has become one of the most closely watched rivalries in UK retail.

From March, Lidl staff will earn slightly more than Aldi workers, with the difference ranging from 9p to 27p an hour depending on location and length of service.

Lidl’s entry-level pay will sit at £13.45 nationally and £14.80 in London, while Aldi’s will be £13.35 nationally and £14.71 within the M25.

This latest move means Lidl has once again edged ahead in the supermarket wage race.

More Stores, More Jobs, Bigger Market Share

This pay rise lands during a major expansion phase for Lidl.

The company plans to open 19 new stores over the next eight weeks, creating up to 640 jobs.

Lidl hit the milestone of opening its 1,000th UK store last year and is aiming to add around 40 more sites in the year ahead.

Industry analysts at Worldpanel currently rank Lidl as Britain’s sixth-largest grocery chain, but it has been making some of the biggest market share gains in recent months.

Strong Christmas Sales Give Lidl Momentum

Lidl’s growth isn’t just about store openings.

Recent figures show it enjoyed a particularly strong festive season, with a 10 per cent jump in Christmas sales.

In the four weeks leading up to Christmas Eve, Lidl recorded turnover of more than £1.1 billion, highlighting just how much momentum the discount retailer has built.

Other Supermarkets Are Raising Pay Too

Lidl isn’t the only chain increasing wages, though the competition is tightening.

Aldi recently announced a £36 million investment in pay and benefits, while Sainsbury’s said staff pay will rise to £13.23 nationally and £14.54 in London.

Morrisons remains in discussions with the retail union Usdaw, while Tesco and Asda have not yet revealed their 2026 pay plans.

The sector is clearly moving into a new era where supermarkets must offer more than just basic wages to attract and keep workers.

What’s Next?

With minimum wage changes arriving in April and rivals still preparing their own pay announcements, Lidl’s move could trigger another round of wage increases across the industry.

The next big questions are whether Tesco and Asda will respond, and whether other retailers will follow Lidl’s lead on benefits like expanded paternity leave, not just hourly pay.

For Lidl, continued rapid expansion and strong sales suggest it will keep investing heavily in staff as it battles for a bigger slice of the UK grocery market.

Summary

Lidl has announced its seventh pay rise in three years, raising entry-level hourly pay to £13.45 nationwide and up to £15.30 in London with service.

The company is also doubling paid paternity leave, offering up to eight weeks fully paid for long-serving staff.

With new stores opening, strong sales growth, and rivals like Aldi and Sainsbury’s also increasing wages, Britain’s supermarket pay race is heating up fast.