Asda has said it will invest £150 million into giving more than 120,000 staff an 8.4% pay rise.
The UK’s third largest supermarket chain has said it will increase basic pay for retail workers to £12.04 later this year.
It is the latest supermarket group to hike pay rates ahead of an increase in the national minimum wage in April.
Mohsin Issa, Asda co-owner, said: “This record investment will see Asda become the highest-paying grocery retailer in the UK, recognising the hard work of our store colleagues in serving customers every day.
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“We want to be a company that people are proud to work for, which is why we are proposing increasing pay for retail and Express colleagues by more than 8% this year.”