Supermarket Pay Rises 2026: How Tesco, Aldi, M&S, Lidl, Sainsbury's & Morrisons Compare

2026 has seen a wave of pay rises across the UK's biggest supermarkets. With the National Living Wage rising to £12.71 from April and inflation still fresh in workers' minds, retailers have been competing to attract and retain staff with above-inflation wage increases.

Every major chain except Morrisons has announced increases well above the legal minimum. But how do they actually compare? And more importantly, what will you take home after tax and National Insurance?

2026 Supermarket Pay: The Full Comparison

Aldi continues to lead the supermarket pay league. From 1 April 2026, store assistants earn £13.50 per hour nationally and £14.88 inside the M25. With length of service, rates rise to £14.47 nationally and £15.20 in London.

The discounter has invested £42 million in colleague pay for 2026 alone, and this marks yet another increase in what has been a sustained push to be the sector's pay leader.

Lidl — £13.45/hr

Lidl sits just behind Aldi at £13.45 per hour nationally and £14.80 in London, effective from 1 March 2026. With length of service, these rise to £14.45 and £15.30 respectively.

This is Lidl's seventh pay rise since 2023, backed by a £29 million investment. The discounter has also doubled paid paternity leave from two to four weeks at full pay.

Marks & Spencer — £13.41/hr

M&S is investing over £70 million to give retail colleagues a 6.4% pay rise — more than double the current rate of inflation. From 1 April 2026, customer assistants earn £13.41 per hour nationally and £14.74 in London.

For full-time staff, this works out to roughly £1,587 more per year. M&S also highlights its wider benefits package — including a 20% staff discount, Sharesave scheme, and pension contributions of up to 12% — which it says brings total compensation to the equivalent of £16.33 per hour.

Tesco — £13.28/hr

Tesco has invested over £200 million — the largest sum of any supermarket — to deliver a 5.1% pay rise for hourly-paid colleagues. From 29 March 2026, the hourly rate rises to £13.28 in stores and online fulfilment centres.

Inside the M25, the London location allowance brings the rate to £14.55 per hour. Over the past five years, Tesco has increased hourly pay by 43%.

Sainsbury's — £13.23/hr

Sainsbury's has announced an above-inflation 5% pay rise for hourly-paid colleagues, taking the rate to £13.23 per hour nationally and £14.54 in London from March 2026.

For full-time colleagues, this means over £1,200 more per year. Like Tesco, Sainsbury's has raised hourly pay by more than 40% over the past five years. The package also includes a pension scheme, free food during shifts, and colleague discounts worth over £600 a year on a typical weekly shop.

Morrisons is the only major supermarket not to announce an above-inflation pay rise for 2026. Hourly-paid staff will see their rate rise to £12.71 per hour — the bare minimum required by the National Living Wage — with London colleagues on £13.06.

The supermarket has cited increased costs from the National Living Wage itself, plus rising employer National Insurance contributions, as reasons for not going further.

The National Living Wage in 2026

From 1 April 2026, the National Living Wage rises by 4.1% to £12.71 per hour for workers aged 21 and over, up from £12.21. This is the legal minimum that employers must pay.

What These Hourly Rates Mean as an Annual Salary

If you work a typical 37.5-hour week, here's what each supermarket's hourly rate works out to per year:

Based on a 37.5-hour week, 52 weeks per year. Your actual hours may vary.

What You'll Actually Take Home

Your gross salary is one thing, but what actually lands in your bank account is another. After income tax and National Insurance, here's roughly what a full-time supermarket worker takes home at each chain:

Estimates based on 2025/26 tax year rates. Assumes no student loan, pension contributions, or other deductions. Your actual take-home will depend on your personal circumstances.

Thinking of Switching Supermarkets?

If you're considering a move to a higher-paying chain, use our calculators to see exactly what the difference would mean for your take-home pay: