Aldi will become the first UK supermarket business to pay its staff at least £11 an hour.
The discount retailer, which employs over 40,000 staff in the UK, said that all store assistants will receive the new rate from January 1. It is the third time in a year the chain has given its staff a pay rise.
It is the latest pay increase by the German retail group, taking its starting rate 15% higher than it was a year earlier. It added that workers within the M25 will receive £12.45 an hour from next year.