Major UK supermarkets, including Aldi and Marks & Spencer, are preparing to implement significant wage increases for thousands of workers starting this April. This move comes amid a broader rise in the national minimum wage, sparking a competitive battle over employee compensation in the retail sector.
National Minimum Wage Changes
The legal minimum wage is set to increase from April 2026, affecting workers across all industries. For individuals aged 21 and over, the hourly rate will rise from £12.21 to £12.71. Those between 18 and 20 will see an increase from £10 to £10.85 per hour, while under-18s and apprentices will benefit from a boost from £7.55 to £8 per hour. However, many supermarkets are choosing to pay well above these statutory levels to attract and retain staff.
Supermarket Pay Rankings
Here is a detailed breakdown of the current and upcoming pay rates at leading UK supermarkets, highlighting which retailer offers the highest compensation.
Aldi
Aldi is poised to become the best-paying supermarket in the UK after announcing a second pay rise this year. From April 1, 2026, store assistants will earn £13.50 per hour nationally and £14.88 inside the M25 area. With length of service, these rates increase to £14.47 and £15.20 respectively, benefiting over 28,000 employees.
Lidl
Lidl recently increased staff pay in March 2025, raising rates from £13 to £13.45 per hour nationally and from £14.35 to £14.80 in London. Based on service tenure, these can rise to £14.45 and £15.30 per hour, impacting approximately 35,000 workers.
Tesco
According to The Workers Union, Tesco increased its minimum pay from £12.64 to £13.35 per hour from March 2026. For London-based workers, the hourly rate will rise to around £14.71, positioning Tesco competitively in the market.
Marks & Spencer
M&S will raise retail pay from £12.60 to £13.41 per hour nationally and from £13.85 to £14.74 in London from April 1, 2026. This adjustment will affect about 55,000 UK employees, enhancing their earnings significantly.
Sainsbury's
Sainsbury's implemented a pay increase from March 2026, boosting hourly rates from £12.60 to £13.23 nationally and from £13.70 to £14.54 in London, ensuring its workforce remains well-compensated.
Asda
As of October 2025, Asda pays its workers £12.60 per hour nationally and £13.82 for those in London. This pay boost has benefited around 115,000 employees, though it currently lags behind some competitors.
Morrisons
Based on reports from the Retail Gazette, Morrisons workers receive £12.21 per hour nationally and £13.06 in London, placing it at the lower end of the pay scale among major supermarkets.
Conclusion
As the national minimum wage rises, UK supermarkets are engaging in a wage war to secure talent, with Aldi leading the pack. Workers can expect improved earnings across the board, though disparities remain between retailers and regions. This trend underscores the importance of competitive pay in the retail industry's ongoing efforts to support its workforce.
