Those working inside the M25 will see their pay rise from £11.95 per hour to £12.85, while those elsewhere will be paid £11.40, up from £11.
With additional pay for length of service, Lidl employees in London can make up to £13.15, while those outside of London can make up to £12.30.
Based on the figures, a new Lidl employee in London working 225 eight-hour days would make £23,130 a year.
The pay rises will apply to 24,500 Lidl staff.
That pushes Lidl in line with Aldi at the top of the supermarket pay table, though Aldi also pays for breaks while Lidl does not. The two discounters have been rapidly gaining market share in the past year as customers look for cheaper shopping options.
It comes as Lidl aims to recruit former staff of Wilko, which is set to make a wave of layoffs after collapsing into administration last month. Lidl says it is “in direct contact with Wilko’s HR team” about opportunities at the supermarket.
“These rates of pay will ensure that Lidl maintains its position as the UK’s highest paying supermarket,” Lidl GB CEO Ryan McDonnell said. “Our people are at the core of everything we do, and this investment recognises the hard work and contribution they make in serving communities across the country every day.”
Lidl says it is spending an extra £8 million per year to deliver the pay rise, and that it has spent £60 million in total over the past year on pay rises.