German-owned discount supermarket group Aldi UK said on Monday it was awarding its store staff a second pay rise this year in another indication of Britain's tight labour market.
Many UK employers are offering higher pay deals in the face of staff shortages and accelerating prices.
The Bank of England is watching settlements closely as it weighs the risk that a jump in inflation to a 40-year high of 9.4% becomes embedded in the economy.
Aldi UK, which trades from 970 stores across Britain, said that from September about 26,000 store assistants would receive a minimum of £10.50 ($12.57) an hour nationally and £11.95 in London - rises of 4% and 3.5% respectively.
Rates had gone up from £9.55 to £10.10 nationally and from £11.07 to £11.55 in London in February.
Aldi is Britain's fifth-largest supermarket group after market leader Tesco, Sainsbury's, Asda and Morrisons. All have raised pay this year.
News by Reuters edited by Donna Ahern Checkout. For more Retail stories click here. Click subscribe to sign up for the Checkout print edition.