A Lidl Bit Better: Leading Supermarket Implements Living Wage

28th September 2015

We love their adverts and now we love how they treat their employees. One of the UK’s top supermarkets, Lidl, has announced it will be implementing the Living Wage for 9,000 of its UK workers.

More Money, Less Problems

The company has been widely praised for its action and is even going above what it needs to; workers will be paid a minimum of £8.20 across the UK and a slightly higher £9.35 in London, above the minimum Living Wage for each area. The move represents a £9million investment for Lidl in total, and their Chief Executive is delighted:

“Lidl employees will be amongst the best paid in the supermarket sector, and that’s something I feel incredibly proud about,”.

The new Lidl wage will mean an annual increase of near £1,200 for Lidl workers and will perhaps address a current concern whereby workers feel can’t get the hours they need to make ends meet.

Currently, Sainsbury’s employees are some of the best paid, receiving pay for their breaks. Tesco does pay more per hour but does not pay for breaks, lessening its financial benefit for employees.

Affordablity Concerns

For the smaller business and those that are struggling, adhering to the Living Wage could bring new struggles – and another cost they simply can’t bare. In April 2016 it will become mandatory though, so decisions will need to be made – it is set at £7.20 and will apply to those aged 25 and over.

Minimum Wage

The Guardian also reported just recently on the Minimum Wage and reports that this will increase by £0.50 to £7.20. The argument is that despite these increases, because of benefit cuts people will still be worse off. The new National Minimum Wage will still be less than the Living Wage, and there are reports that this needs to be higher still to accommondate for costs in today’s environment… it’s a contentious issue to say the least.

What We Think

Although other things such as flexible working and work/life balance are more important to workers nowadays, monetary compensation for efforts is still important. Being able to live comfortably and have a sound financial situation is vital, and can reduce stress and other factors that can affect performance at work.

Understandably, affordability can be an issue for some employers, but if you can afford to give your workers the Living Wage, it could bode well for productivity among other benefits.

Lidl "workers will be paid a minimum of £8.20 across the UK and a slightly higher £9.35 in London, above the minimum Living Wage for each area."