The minimum pay for staff at Marks & Spencer is to be raised to £10 an hour, the retail giant has confirmed, while it will also boost health benefits for its workers.
The news comes as labour shortages continue to drive wages higher across the retail and hospitality sectors.
The move will put the retailer above the new minimum wage of £9.50 for workers over 23 - will come into force in April.
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M&S said it will also raise its minimum rate in London to £11.25 an hour, the PA news agency reported.
The new £10 national base rate of pay will put it on par with a host of rival retailers including Aldi, Lidl, Morrisons and Sainsbury's, which have risen rates in recent months.
Workers at M&S will also benefit from an extended benefit package, including access to a virtual GP service, health check screening and advice on financial management.
Chief executive Steve Rowe said: "M&S is always at its best when we've put our people at the heart of it.
"The contribution our teams have made to support our customers and each other every day through some really challenging times has been remarkable.
"By once again increasing our investment into one of the best all round reward offers for store colleagues across retail, we're making sure that every colleague, whatever they do and wherever they work, is properly rewarded and supported at M&S."
New figures from the Office for National Statistics on Tuesday revealed that average pay in the UK grew by 4.3% in the final quarter of last year, but this is currently outstripped by inflation, which has soared by 5.5%.
