Aldi is to give Irish workers a new minimum wage of €11.70 an hour.
The current national minimum wage is €9.55 per hour.
Aldi says the move makes them the first to commit to paying staff a living wage rate, which was recommended by The Living Wage Technical Group.
The supermarket says the new rate will come into effect on February 1st and represents a 20c increase on entry-level pay.
The announcement comes after a period of sales growth and store expansion.
Aldi is currently engaged in a three year, €100m new store opening programme, while also investing €60m in revamping existing stores.