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Aldi has announced plans to give all shop floor workers a pay rise in a move that will make it Britain's best paying grocer.

All store colleagues will earn a minimum hourly rate of £9.40 nationally and £10.90 inside the M25, from 1 February.

They previously earned a minimum of £9.10 and £10.55 per hour respectively.

The national rate will rise to £10.41 per hour for colleagues with three-years' service, while colleagues in London with two years' service will earn £11.15 per hour.

Aldi’s new rates exceed the Living Wage Foundation’s recommended real living wage rates of £9.30 per hour nationally and £10.75 per hour inside the M25.

Workers will also continue to be paid for breaks taken during their shift.

(Image: Getty)

Giles Hurley, at Aldi UK, said: "The dedication and commitment our store colleagues deliver every day when serving our customers underpins our success. We have the most efficient and productive workforce, and this is why they earn the highest rates of pay in the grocery sector."

Aldi, which currently has 874 stores, is recruiting for over 3,800 store-level positions this year and remains on track to achieve its long-term target of 1,200 UK stores by 2025.

Giles Hurley added: "We want to recruit the best people in retail, invest in their training and provide them with the opportunity to develop their careers with Aldi as our business grows."

The supermarket’s current share of the UK grocery market is 7.8%, having increased by 0.4% during the last 12 months.

Difference between the 'living wage' and 'minimum wage'

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

However, the 'Living Wage' is a completely separate entity set up by the Living Wage Foundation. It's also reviewed annually.

New minimum wage rates from April 2020 *the £3.90 rate apples to apprentices under 19 or in their first year

The latter is not a legal requirement, but more 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 £9.30 an hour in the UK, or £10.75 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.