Aldi is giving its warehouse workers their second pay rise in a year, with wages rising almost 6% for most staff next month, in the latest sign of the intense competition for workers in the UK. The UK’s fifth largest grocer said the majority of its warehouse workers, known as selectors, would now earn a minimum of £12.66 an hour, up from £11.95 at present after an increase from £11.48 in January. Those working in London will receive a minimum of £13.05 an hour. Aldi said last month it would raise pay for its shop workers for the second time in a year. Tesco and the sandwich chain Pret a Manger have also increased pay twice for workers in the past 12 months, while Asda raised its pay to £10.10 an hour in July after unions criticised it for lagging behind rival chains with a rate of £9.66 introduced in April. This week, the Nationwide building society said it was handing more than 11,000 staff who earn less than £35,000 a year a one off £1,200 payment to help with the cost of living. That sum came on top of a 4% pay rise put through earlier in the year. Andrew Bailey, the governor of the Bank of England, has said the spate of pay increases, and industrial action demanding more in the face of soaring inflation on living costs, means inflation may become “embedded”. In total, 4,200 staff will benefit from the pay rise, working across the 11 Aldi distribution centres that serve its 970 stores. Those working night shifts will get a premium of 25% on basic pay, up from 20% previously, as companies battle to attract enough warehouse staff amid an increase in home deliveries during the coronavirus pandemic. The increase puts Aldi warehouse workers well ahead of those at the online retailer Amazon, which has been the subject of sit-ins and other protests. The unofficial demonstrations started after staff were offered a 35p-an-hour pay rise to a minimum of £10.50 an hour, or £11.45 at its Tilbury warehouse. Workers have been calling for a minimum increase of £2 and the GMB union has written to Amazon asking for pay of at least £15 an hour. The rates also exceed the Living Wage Foundation’s current recommended real living wage of £9.90 an hour nationally and £11.05 inside the M25. That rate is expected to be increased in October, earlier than usual, because of the rising cost of living driven by spikes in the price of energy, fuel and food. Giles Hurley, the chief executive of Aldi UK and Ireland, said: “This announcement recognises the amazing contribution our logistics colleagues make in serving communities across the country. “We’re also pleased to be able to increase the night premium we pay to our many colleagues who work so hard to keep our stores well stocked. Their outstanding efforts help ensure that our customers continue to have access to fresh, affordable food, every single day.”