Lidl to become first UK supermarket to pay the full living wage to workers

It is said that this change will cost Lidl £9 million and is worth £1,200-a-year for their 9,000 staff members.

The compulsory National Living Wage is due to be introduced in April 2016 for all working people aged 25 and over and will be set at £7.20 per hour. This hourly rate is due to increase to £9.00 by 2020. With the current minimum wage for 21 years plus being £6.50 an hour, this is obviously good news for many employees – some may still even think that this raise is not enough.

Companies, however, are understandably struggling to forecast the impact of the new national living wage. Retailers have warned over the impact of higher staff costs cautioning that they may need to raise their prices as a result or having to face a fall in profits. Others fear that raising the minimum wage to the living wage may actually increase unemployment. The more positive feel that paying an increased hourly rate may reduce staff turnover, incentivise their employees to work harder and become more loyal.

Only time will tell the true effects of the change, but Lidl are leading the way with this!

Keep up to date with the latest legal developments by following our Employment team on Twitter @brachers_emplaw.

This content is correct at time of publication