Lidl Ireland has announced the creation of 700 new jobs in Ireland this year, bringing the workforce at the supermarket to over 6,000 in the Republic and over 7,500 on the island.

Speaking at a branch of Lidl in Carrigaline, Co Cork, Employment Minister Simon Coveney said credit was due to the supermarket chain for investing heavily in Ireland – not only in terms of hiring personnel but in purchasing Irish products.

Minister Coveney also praised the company for giving a pay rise to employees.

"They are going to employ an extra 700 people across the country this year. Probably four or five new stores,” he said.

"And also, which is equally important, they are deciding to give a very significant pay rise to all of their staff which averages out at about 7.5pc of an increase for everybody.

“So I think they are sending a very strong signal that they are committed to Ireland, they want to grow here, they want to employ Irish people and they want to build new stores."

Minister Coveney said that the significant jobs creation at Lidl was a sign of "real confidence" in the retail sector in Ireland.

"The retail sector is the largest indigenous employer in Ireland. [There are] about 330,000 to 340,000 people employed in retail across the country. And of course Lidl Ireland are a big part of that now,” he added.

“Last year they spent over €1 billion buying Irish-sourced products. And a third of that billion euros actually is exported to Lidl stores outside of Ireland.

"So this is a big buyer of Irish produce, a big employer of Irish people and of course more and more stores across the country in well-paid jobs. It is a very good story for retail.”

He said the support of Government and the decision by companies such as Lidl to increase wages would go a long way toward helping families through the cost-of-living crisis.

“The Government has already put a very strong package in place in terms of responding to the increased cost of living. Helping homes to pay their energy bills, helping businesses to do the same and looking to try to increase income levels for people on fixed incomes. As well as reducing the tax burden on middle-income earners as well,” said Mr Coveney.

“Don’t forget, we announced perhaps the biggest Budget ever only a few months ago. And the Government has said that it will continue to support people through the cost-of-living pressures this year as well – we have put money aside to do that.

“The combination of businesses like Lidl agreeing to pay their staff more and the Government supporting people, particularly on low incomes – we will do everything we can to help families through what is a cost-of-living crisis over the next couple of months."

This year will see the opening of a range of new Lidl stores in Kilkenny, Ballincollig, Bettystown and Limerick. 2023 will also see the completion of a €75m extension of the retailer’s Mullingar distribution centre.

Lidl also announced a €14m investment in pay increases for its existing workforce in the Republic of Ireland with a further £3 million being invested in the retailers’ operations in Northern Ireland, which it operates from its head office in Dublin.

All employees will benefit from an increase from March 1. On average, this will result in a 7.5pc pay increase for employees. That approximately equates to between €2,000 and €2,500 for every employee per annum.

This increase is in addition to the retailer’s commitment in October to paying the new living wage rate of €13.85, as recommended by the Living Wage Technical Group.

Maeve McCleane, chief people officer at Lidl Ireland and Northern Ireland, said that the removal of the mandatory retirement age at Lidl in August of last year had been "very well received" by their colleagues.

"And also it proves to be very beneficial in recruitment as well. We are looking at [the fact] that people are going to be living longer,” she said.

“I read a statistic the other day that anyone born after the year 2000, their life expectancy is now 100. So to expect that people are going to retire at 60 or 65 is probably not realistic.

“And for longevity we want to see people working for longer if they want to – that the opportunity is there, that people are not forced to leave the workforce because of the mandatory retirement age.

“For us, it is great because it means we have a much more diverse workforce. We have a broader range of skills that stay in the business."

Ms McCleane added that Lidl was keenly aware of the cost-of-living crisis and was doing everything in its power to keep prices low.

"We have always been committed to keeping our prices as low as we possibly can and ensuring that any cost because of an increase [in the price] of doing business is not passed on to our customers,” she said.

Reporting: The Irish Independent