Economy

Lidl boosts wages above its grocery rivals

Lidl boosts wages above its grocery rivals

More than two in five (42%) part-time workers in the United Kingdom earned less than the living wage compared to almost one in six (13%) full-time workers, with part-time roles three times more likely to pay below £8.45 an hour, or £9.75 in London.

The discount supermarket said that it will be increasing the wages of its entry-level staff to £8.75 per hour outside of London and to £10.20 within London.

More than 1,500 London businesses are set to pay all employees more than £10 an hour for first time.

Hackney Council is signed up to the LLW, and Mayor Philip Glanville has previously urged all businesses in the borough to follow its lead.

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As a result, London now accounts for nearly 42 per cent of businesses paying the Living Wage in the United Kingdom.

Some Hackney employers, including the Picturehouse cinema opposite the Town Hall, pay some staff less than LLW.

Lidl has raised its wages to bring them in line with the Living Wage Foundation rate of pay, making it the highest-paying supermarket in the UK.

The wage rise comes into effect from today, but employers will have their own "phase in period" for the change, according to the Living Wage Foundation.

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Sadiq Khan added: "Paying the London Living Wage is not only the action of a responsible organisation, but a successful one too".

Additionally, 27% of people earning less than the living wage said their household costs had worsened compared to those experiencing an improvement in October 2017 (7%).

Industry figures revealed this summer that the chain's increasing popularity showed no sign of slowing as Lidl overtook Waitrose to become the seventh-largest supermarket in the UK.

Unlike the national minimum wage, the living wage is an hourly rate of pay set independently and updated annually that is calculated with reference to the basic cost of living in the UK. "Nine out of ten accredited Living Wage employers report real benefits including improved retention, reputation, recruitment and staff motivation".

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The Citizen has paid its staff London Living Wage since it was first introduced in 2011, and editor Keith Magnum said he was "delighted" to receive the recognition.