The British arm of German discounter Aldi will increase pay rates for around 7,000 warehouse workers from next month, a third rise since January 2022, it said on Wednesday.
From 1 February warehouse workers will receive a minimum rate of £13.18 ($16.28) an hour, up from £11.48 last January.
Inflation in Britain is running at 10.5% and the Bank of England is watching pay settlements closely as it mulls further rises in interest rates.
From this month it is paying store staff a minimum of £11 an hour outside of London and a minimum of £12.45 in the capital.
Sainsbury's Raises Staff Pay
Earlier this month Sainsbury's announced another pay rise for its store staff, while Tesco is in talks with workers and unions on its pay review.
British supermarket group said on 5 January that it would raise pay for its 127,000 hourly paid workers to at least £11 an hour from February as it looks to attract and retain staff in a tight labour market.
Britain's second largest grocer after Tesco, and one of the country's biggest private sector employers, said the pay of Sainsbury’s and Argos retail workers would increase from £10.25 to £11.00 per hour outside of London, and from £11.30 to £11.95 per hour in the capital.