FIRST Union said the deal came after many months of "tireless" work from all sides.

"Our members are thrilled to have stood together, negotiated together, and held out for a great deal that recognises their hard work and provides a clear pathway to the living wage," said Tali Williams, FIRST Union Secretary for retail, finance and commerce.

According to Living Wage Aotearoa New Zealand, the living wage is defined as "the income necessary to provide workers and their families with the basic necessities of life."

It is calculated independently by the New Zealand Family Centre Social Policy Unit and is updated each year.

Michelle Mckenzie, who has worked at Countdown for more than eight years, says the extra money will make a big difference.

"A wage rise like this means we can spend less time worrying about making ends meet at home, making us less stressed at work and feeling more secure about our futures," she said.

"In my life, it's huge. I have four older kids, and as a family, we can start to do more of the things together that we've sometimes missed out on in the past - $2 or $3 an hour is a really big deal when it comes to living a good life and spending time with your family."

Countdown says it is proud of the change.

"We're proud to be a good employer and ensuring our team can continue to grow their earning ability is a key part of this," says Brett Ashley, the company's general manager operations.

"We've worked hard with FIRST Union to develop a fair path to more income for our team while also balancing the realities of keeping and creating jobs, and keeping food prices affordable for New Zealanders."

FIRST Union said it hopes the deal will set a precedent for other supermarkets to follow.