Lidl just became the first supermarket in Britain to massively hike pay

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A fan gives the thumbs up prior to Stage 3 of the Tour of Yorkshire from Wakefield to Leeds on May 3, 2015 in Wakefield, England. (Photo by )

Bryn Lennon/Getty Images

A fan gives the thumbs up prior to Stage 3 of the Tour of Yorkshire from Wakefield to Leeds on May 3, 2015 in Wakefield, England.

Lidl just upstaged every single other supermarket in Britain by massively hiking its pay for its employees.

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Lidl said its workers will earn a minimum £8.20 an hour across England, Scotland and Wales, and £9.35 an hour in London. Previously, staff earned £7.30 an hour while London workers £8.03 an hour.

This still may seen very little but this is way above the British government's targets for the National Living Wage.

In July, UK Chancellor George Osborne said the government would scrap the National Minimum Wage - £6.50 an hour for workers - for a new "National Living Wage" of £7.20, in April next year.

This is after years of campaigns from charities and lobby groups which insisted that the National Minimum Wage was not enough for workers on this salary bracket to live.

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The National Living Wage is intended to pay employees the minimum amount to live a "normal" standard of living. For example, a full-time waitress should be able to live off her low wages and afford rent, food, transport, and bills without having to take a second job or an exceptional amount of extra hours.

By 2020, the National Living Wage should rise to £9.

However, the under-25s will still be stuck with the old minimum wage, which rises to £6.70 next month.

Meanwhile, the charity and think tank Living Wage Foundation thinks the government's targets are too low. It recommends the minimal hourly rate for the National Living Wage to be at £7.85 and £9.15 inside London.

Lidl has around 4% of the UK grocery market and turnover last year jumped 21% to £4 billion. Meanwhile, all Britain's traditional major supermarkets are losing market share to Aldi and Lidl< and have been dragged into a price war with them.

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