The low-priced supermarket said that it would be increasing entry-level wages from £8.45 to £8.75 per hour outside of London and £9.75 to £10.20 within the M25, in-line with the increase in living wage announced on Monday.
More than 3,600 employers signed up to the rates, which are higher than the statutory National Living Wage of £7.50 for over 25-year-olds.
In the North West 266 employers have committed to paying staff more as the rate rises.
Workers in London - where living costs are substantially higher - will see their hourly pay boosted by 45p to £10.20 an hour.
"The supermarket has still not made its way to official accreditation, which is the only public guarantee that its workers' pay will continue to keep pace with the future cost of living", she said.
Andy Bagnall, director at KPMG, said: "Today's figures show that more work needs to be done if we are to eradicate in-work poverty". The council also requires all contractors with contracts over £100,000 to pay the Oxford Living Wage to their staff and subcontractors.
"The new living wage rates will bring relief for thousands of United Kingdom workers being squeezed by stagnant wages and rising inflation". Chief executive John Holland-Kaye said "paying the living wage is the right thing to do".
The Foundation said Heathrow was among 150 organisations to have joined its ranks in recent times - the airport's parent firm agreeing to pay all its workers at least the voluntary rate by 2020. More than 16,000 employees will benefit from the change. But more companies need to sign up.
"The Movement has contacted numerous top NZ firms to invite them to be Living Wage and Vector is the first to embrace the concept". This contrasted with a sustained drop in debt levels for those earning above the Living Wage. In the capital today, more than 2 million people are struggling to make ends meet and the ethnic pay gap is shockingly and unacceptably large. "Numerous accredited employers I speak to tell me of the increased productivity and reduced staff turnover that they've experienced since signing up".