The move will see Asda invest £141 million (€158.7 million) this year in raising hourly wages to £11.00 from April and £11.11 from July for more than 115,000 people working across its 633 stores.
This initiative follows an 8% pay increase for hourly-paid retail roles during 2022.
The new pay rates, agreed upon with the trade union Usdaw, exceed National Living Wage and Real Living Wage rates.
Mohsin Issa, Asda’s co-owner, said, "We appreciate the great job that our store colleagues do representing Asda while serving customers day in and day out.
"We know that rising living costs are affecting customers and colleagues alike and recognise we have a responsibility to support them during these challenging times."
Asda has also launched a new initiative to freeze the prices of approximately 600 branded and own-label products to support customers facing a cost-of-living crisis.
The campaign will run from 21 February to 31 May and include fresh meat, dairy, fruit and vegetable products, among others.
The campaign allows families access a free children’s breakfast and main meal for £1 in all Asda cafes.
Last week, Asda announced a new partnership as it seeks to transition its online grocery business onto its own platform, from previous owner Walmart’s managed systems.