Aldi will become the first supermarket in Dorset to pay its store assistants at least £13 an hour.
The new minimum rate, which increases to £14.33 within the M25, will take effect from Monday, September 1.
This exceeds the Real Living Wage of £12.60 (£13.85 an hour in London) set by the Living Wage Foundation last year.
Store assistants currently receive a minimum of £12.75 an hour nationwide, and £14.05 an hour within the M25.
Depending on their length of service, store assistants' pay will rise further to £13.93 nationally and £14.64 within the M25.
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Aldi remains the only retailer to offer all colleagues paid breaks, worth approximately £1,385 a year for the average store colleague.
Giles Hurley, chief executive officer, Aldi UK and Ireland, said: "Our people are the driving force behind our success across the UK.
"This latest investment in pay is a reflection of their hard work and the incredible contribution they make every single day.
"We’re proud to remain the UK’s highest-paying supermarket and will continue to support our colleagues in every way we can."
The news follows Aldi being named the Employer of the Year at The Grocer Gold Awards for its competitive pay, investment in training and focus on diversity and inclusion.
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