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20th Oct 2022

Lidl to implement the living wage for all employees

Katy Thornton

lidl living wage

The supermarket is the first large employer in Ireland to introduce the minimum rate.

Lidl has announced a new commitment to introduce the recommended living wage for employees.

Employees at the supermarket chain will now earn a minimum of €13.85, the recommended rate by the Living Wage Technical Group.

“The change represents an investment of over €7.5 million and benefits 4,200 employees, as all of our other employees already earn in excess of the new Living Wage,” a spokesperson for Lidl said.

“The Living Wage is an independent recommended rate of income to have a socially acceptable standard of living.

“This is the second pay increase we’ve introduced this year and is in recognition of the ongoing hard work and dedication of our store and warehouse colleagues, particularly as the cost-of-living crisis continues.

“In March of this year, we made a €10 million investment which saw all 5,000 employees across the business receive a pay rise.

“We are proud to offer the most competitive compensation and benefits packages in the industry and would like to take this opportunity to acknowledge the hard work and dedication of our 5,000 strong team in the Republic of Ireland that continue to make Lidl the success that it is.”

The current minimum wage in the country is €10.50, but is set to increase to €11.30 in January 2023.

The government is planning on replacing the minimum wage with a “living wage” set at 60% of the median wage of that year, which for 2022 would be €12.17 per hour.

However, the Living Wage Technical Group has recommended the government set the living wage at €13.85 for 2022/2023, with the number based on what would provide workers with a “minimum acceptable standard of living”.

From 2026, the living wage will fully replace the minimum wage and will be regarded as the mandatory base pay rate for all employers to adhere to.

Depending on “prevailing circumstances”, it has been recommended to give the Low Pay Commission discretion to introduce the full living wage faster or slower than the proposed four-year timeline.

This article originally appeared on Joe.ie.

Header image via Shutterstock

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