Race for highest minimum wage in retail: This is how much workers at discounter Lidl now earn

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The minimum monthly salary is 4,550 francs. Full time, 41 hours a week, 13 times a week. Lidl, based in Weinfelden TG, promises this to its employees. Discounter and social partners Syna and the Trade Association reported on Thursday the 2024 wage talks.

Lidl will increase its overall wage bill by 1.8 per cent from March 1. There is also an additional 0.6 percent increase in individual wage increases. In addition, everyone will be given shopping vouchers worth up to 500 francs, depending on their workload.

Cornelia Bickert, industry director at Syna, speaks of the “convincing overall package” that this year’s pay period offers Lidl employees. So the discounter is sounding the marketing trumpet loudly. Here’s why: There is a shortage of staff on the sales front of stores. A high minimum wage helps compete for good personnel. Here, two discounters in particular are fighting for the pay crown.

Lidl boss Nicholas Pennanen (38) on the one hand: “I am very happy that we were able to increase our minimum wage as well.” On the other hand, Aldi. Its boss, Jérôme Meyer, 44, announced in December that he would continue to raise the “highest minimum wage in retail” in 2024. Aldi currently pays 4,700 francs (13 times) to unskilled workers. As with Lidl, the increase compared to last year is around 50 francs per month. Converted to working 41 hours a week, Aldi pays at least 4,588 francs for full-time work. So only slightly more than rival Lidl. The statistically lower wage limit in Switzerland is 4,399 francs per month.

Denner, Migros and Coop pay less minimum wage

Lidl emphasizes: “We pay the highest GAV minimum wage in the industry.” Whatever the workload, it is fully insured by BVG, adds spokesman Mathias Kaufmann. The usual co-ordination deduction has been waived, but that’s not the case at Aldi. A part-time position at Lidl is better paid than at other retailers, according to social partners. While doing this, they intensify the competition even more.

According to Lidl spokesman Kaufmann, 4,000 of the total 4,500 employees in Switzerland will benefit from the wage increase. The majority of the remaining 500 people are staff. Half of Lidl’s employees work between 80 and 100 percent. Kaufmann said 40 percent is a good 40 percent of the “real” part-time workload of 40 to 70 percent. Especially students and temporary workers will work with a workload of up to 30 percent. This affects approximately 10 percent of the workforce.

So where are competitors such as Denner, Migros and Coop when it comes to minimum wage? You pay almost 400 francs less than at Lidl and Aldi. The three contestants emphasize that it is not only the minimum wage that is important, but also social benefits such as maternity and paternity leave, payments to the pension fund and holidays. Here, large distributors Migros and Coop are generally more generous than other companies in the sector.

Source :Blick