Supermarket Pay Wars: Aldi Crowned UK's Highest Payer as Chains Boost Wages
Supermarket workers across the United Kingdom are set to benefit from substantially revised pay structures as leading grocery chains announce sweeping wage increases. Hourly rates are rising for both new recruits and experienced staff members, with numerous retailers also enhancing perks beyond basic salaries, making positions within the supermarket industry increasingly attractive.
This development follows Aldi's significant announcement today of wage hikes for thousands of employees nationwide, firmly establishing itself as the UK's highest-paying supermarket. We have compiled the most recent comprehensive data on salaries and workplace benefits from all ten major supermarket chains, including Waitrose, Sainsbury's, Lidl, Tesco, Aldi, Asda, Marks and Spencer, Iceland, Morrisons, and Co-Op.
Discover which chains provide the best and worst wages to their dedicated workforce, and how the competitive landscape is shifting in favour of employee remuneration.
10. Iceland
Iceland currently ranks as the lowest-paying supermarket, offering employees outside the M25 £11.20 per hour for those under 21 and £12.27 for those over 21. Workers residing in London receive slightly higher rates of £12.32 for under-21s and £13.50 for over-21s. A spokesperson for Iceland has indicated that an announcement regarding potential pay changes will be made in April 2026, leaving current rates among the most modest in the sector.
9. Morrisons
Staff at Morrisons are presently receiving £12.21 per hour nationally and £13.06 in London, according to industry reports. However, Morrisons is among the limited number of chains to confirm that workers will not experience any substantial wage rises this year. This decision follows government taxation increases on employers and the national minimum wage boost. A Morrisons spokesperson explained that the business must "balance any further pay offers with the overall performance, affordability and long-term stability of the business."
8. ASDA
ASDA is currently paying its staff £12.60 nationally and £13.82 for those in London. As of late January 2026, ASDA has not made an official announcement about a retail pay rise for this year. However, based on union activity, prevailing market conditions, and historical patterns, industry observers anticipate a new deal in the first quarter. In 2025, ASDA delivered one of the largest pay increases in the UK retail sector, backed by an £80 million investment that progressively increased pay for approximately 115,000 store-based colleagues.
7. Marks and Spencer
In 2025, the hourly rate for UK customer assistants at Marks and Spencer rose from £12 to £12.60, representing a 5% increase on the previous year and a substantial 26% increase since 2022. This adjustment impacted roughly 50,000 staff across the UK. For full-time colleagues outside London, this translated to an extra £98 per month. In London, customer assistants witnessed their pay climb from £13.15 to £13.85 per hour, a 5.3% increase. There has yet to be an announcement for a pay increase in 2026.
6. Co-op
Co-op last revealed its pay rise last year for August 1, 2025. Colleagues are now earning £12.60 nationally and £13.85 in London. There have been no announcements for 2026 yet. Kate McCrae, Co-op Operations Director, stated: "Our store colleagues are at the very heart of the business, and we are pleased to be able to provide a reward package that is competitive, above inflation and impactful. This deal reaffirms our ongoing commitment to the Real Living Wage and ensures Co-op is among the highest food retailers in terms of pay."
5. Tesco
Tesco hasn't yet revealed a pay increase for its staff for 2026; nevertheless, it remains among the top five best-paying supermarkets. According to reports, Tesco offers £12.64 nationally per hour and £13.85 per hour within the M25. "Tesco remains one of the few supermarkets to recognise an independent trade union and negotiate pay rates with them for all its hourly-paid colleagues in the UK," the supermarket stated. Tesco UK CEO, Matthew Barnes, emphasized in 2025: "Our colleagues are our greatest asset, and this pay deal recognises the brilliant work they put in day in, day out to serve our customers."
4. Sainsbury's
The present base rate at Sainsbury's stands at £12.60 an hour nationally and £13.85 an hour in London. However, from March 2026, Sainsbury's will boost its pay by 5%. This will raise the national rate to £13.23 an hour and the London rate to £14.54 an hour. For numerous full-time staff members, this translates to receiving more than £1,200 annually, alongside a comprehensive benefits package. This package also encompasses a pension scheme, a share-save scheme, complimentary food during shifts, and employee discounts that can assist workers in saving over £600 yearly on an £80 weekly shop.
3. Waitrose
Waitrose is part of the John Lewis Partnership, which has announced a £108 million investment in employees' wages. From April 1, retail floor staff at John Lewis and Waitrose will see a 6.9% pay rise. This will raise the minimum hourly rate to £13.25 nationwide and £14.80 within the M25. For a standard full-time Partner, this amounts to an extra £1,600 annually. Helen Webb, Chief People Officer for the John Lewis Partnership, commented: "This £108m investment is about putting more money into their pockets month-in, month-out. This pay growth demonstrates a sustained commitment to Partner pay, consistent with previous years."
2. Lidl
In second place is Lidl GB, which has announced a further £29 million investment in wages. The supermarket intended to become the UK's highest-paying supermarket but has been narrowly surpassed by Aldi. Nevertheless, the changes will benefit all 35,000 staff members, both salaried and hourly-paid, across the country. From March 1, entry-level hourly wages will rise to £13.45 nationally, climbing to £14.45 with length of service. In London, wages will increase from £14.35 to £14.80, rising further to £15.30 with length of service. Alongside its wage increase, Lidl GB is doubling paternity leave from two weeks to four weeks on full pay.
1. Aldi
Aldi claims the top spot for wage rates, announcing a significant wage increase for thousands of workers. From April 1, store assistants will receive £13.50 per hour across the UK and £14.88 per hour inside the M25. Wages will rise further with length of service, reaching £14.47 nationally and £15.20 within the M25. More than 28,000 hourly-paid store staff will benefit from the change, which represents the second wage rise for Aldi teams this year. Giles Hurley, Chief Executive Officer of Aldi UK and Ireland, stated: "We've invested over £42 million in colleague pay this year because we know that every single member of Team Aldi is fundamental to our success and deserves nothing less." Aldi employs more than 45,000 people across the UK and is continuing to expand rapidly, with plans to open 40 new stores in 2026 as part of a £370 million investment programme.
