Morrisons is increasing pay for thousands workers to a minimum of £10.20 an hour.
The supermarket says this is up 2% from the £10 an hour they were previously paid.
Morrisons has also upped the minimum wage for London staff - covering all stores within the M25 - to £11.05 an hour.
This is the same rate as the voluntary London Living Wage. Morrisons says 80,000 workers will see their pay go up.
The new deal is due to start in October, subject to the offer being approved by staff.
The announcement means Morrisons is now the highest paying UK supermarket for shop floor workers - you can see how others compare below.
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Clare Grainger, group people director at Morrisons, said: "We're very pleased to be maintaining our position as the highest paying UK national supermarket."
Clare Grainger, Group People Director at Morrisons, said: “Following last year’s 8.7% pay increase for our Customer Assistants, Morrisons was the first UK supermarket to reach the £10 an hour mark.
“We’re very pleased to be maintaining our position as the highest paying UK national supermarket. Today’s announcement recognises the important contribution our colleagues make in serving local communities up and down the country.”
Joanne McGuinness, Usdaw National Officer, said: “Usdaw has negotiated an established rate of £10.20 per hour for Morrisons workers, which is the highest basic pay rate in the supermarket sector.
“We have also secured an established rate of £11.05 for staff within the M25, the same as the London Living Wage.
“Our members in Morrisons will now be balloted on the company’s offer.”
How does Morrisons’ pay compare to other supermarkets
Rival chains Tesco, Sainsbury's and Asda have also announced pay rises for their workers this year.
Supermarkets received huge profits during the Covid pandemic, sparking calls for bosses to increase the pay of workers during the cost of living crisis.
Here is how pay compares across all the stores…
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Aldi: from £10.10 an hour
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Asda: from £10.10 an hour
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Lidl: from £10.10 an hour
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Marks and Spencer: from £10 an hour
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Morrisons: from £10 an hour
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Sainsbury's: from £10 an hour
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Tesco: from £10.10 an hour
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Waitrose: from £9.90 an hour
Iceland was last year paying its shop floor workers at least the National Living Wage, which has just increased from £8.91 to £9.50.
It hasn’t confirmed if any pay increases have happened this year.