German discounter Lidl has put forward a £10million pay rise for workers, in a move that will see wages jump for 19,000 employees next March.

The grocer said it will increase entry-level pay from £9.00 to £9.30 an hour outside of London and £10.55 to £10.75 within the M25, going up to £11.70, depending on location and length of service.

It means employees will benefit from pay that is between 13-30% higher than the Government’s current ‘National Living Wage’, and in line with charity the Living Wage Foundation's rates.

"During this time of such uncertainty, we feel fortunate to be able to make this investment in our colleagues, and give them peace of mind with regards to their salary," Lidl GB chief executive Christian Härtnagel, said.

"Our hourly paid employees represent over 80% of our entire workforce, and are the absolute backbone of our business. It is because of them that we continue to be the fastest supermarket, and are able to realise our ambitious expansion plans.

"This move is, therefore, testament to the unwavering commitment that each and every one of them puts into their work on a daily basis."

The new wages, will come into effect in March 2020, and will align with the rates advocated by the Living Wage Foundation to reflect the cost of living.

Lidl currently has 770 stores across Great Britain and this month confirm a target of 1,000 stores by the end of 2023.

In June, the discounter also announced a £500m investment in London over the next five years, as it opens new stores across the capital.

National Living Wage vs Living Wage – what's the difference?

The 'National Living Wage' and the 'Minimum Wage' are both set by the Government and all employers must comply.

However the 'Living Wage' (also known as the Real Living Wage) is a completely separate entity set up by the Living Wage Foundation. These rates are also reviewed annually.

It's not a legal requirement, but based on what campaigners believe workers should be earning (factoring in inflation and so on). Many employers – such as supermarkets – have chosen it in favour of it over the government's guidelines and therefore pay their workers more.

Currently the Living Wage stands at £9 an hour in the UK, or £10.55 if you live in London. The rates apply to all those aged 18 or over. Here is a full list of the employers that pay it.

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