Morrisons is the first of the big four to commit to the recommended living wage.
From March next year it will pay store staff £8.20 an hour, up from a previous minimum of £6.83. The new wage will apply to all age brackets.
Lidl is set to pay staff £8.20 an hour and £9.35 an hour in London.
The Living Wage Foundation’s current recommended minimal hourly wage is £7.85, higher than the government’s official National Living Wage, which starts at £7.20 next April.
David Potts, chief executive of Morrisons, said: “We have been listening to our colleagues who told us they want their pay to be more competitive and simpler.
“By paying a significantly higher hourly rate, we are recognising the contribution of our excellent staff, who are so important to the revival of Morrisons.”
Sainsbury’s recently implemented a 4% pay rise to £7.36 per hour for store staff, bringing it above the National Living Wage.