German supermarket discounter Lidl announced it would hike its minimum staff wages across its stores in Britain on Friday.
The wages of over 9,000 staff are to be hiked from October to a rate set by the Living Wage Foundation, which calculates a recommended hourly rate of pay based on the cost of living.
"We recognise that every employee forms an integral part of team Lidl, and each individual's contribution is valued," said Lidl UK chief executive Ronny Gottschlich.
"It's therefore only right that we show our commitment, in the same way that the team commit to the business and our customers each and every day, by ensuring a wage that supports the cost of living."
Low pay is a key political issue in Britain, where a return to economic growth after the economic crisis has been slow to impact wages.
Currently, staff outside London are paid a minimum of £7.30 an hour (10 euro, $11.4), with those within London given a minimum of £8.03.
From October these rates will rise to a minimum of £8.20 outside London and £9.25 per hour within the capital.
The raise will affect 53 percent of the 17,000 workers the supermarket employs in Britain.
A spokeswoman for Lidl said that the rise in wages would not affect the supermarket's prices.
The rate is above the "national living wage" that finance minister George Osborne announced would be brought in from next April, which is £7.20 an hour, rising to £9 from 2020.
Lidl says it is the first supermarket in Britain to commit to paying the Living Wage Foundation rate.
The growth of Lidl and fellow low price chain Aldi in the British market has put pressure on Morrisons, Tesco and other leading supermarket chains, sparking a price war.