When it comes to college students setting up their first homes, many would be lost without the inexpensive, dependable furniture options from Ikea.
That said, the privately held Swedish-owned retailer isn't just making life easier for its customers – but for its employees too, thanks to a recent announcement that it planned to raise employee pay.
Related: IKEA is startled when customers pan urban store designs
Hourly workers in the UK will get a 10% raise and salaried workers will get a 5% raise, according to a new report from Retail Week. The increase will kick in in 2024, split into two 5% increments.
Workers eligible for it will also get a share of a bonus pot totaling 25.6 million pounds (32.3 million U.S.). That translates to a month's extra pay, which is perfectly timed with Christmas right around the corner.
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The move is an effort to align Ikea with the UK's Real Living Wage program, which is higher than the government's living wage by several dollars. While it is an optional program, it aims to help more people make enough to comfortably live on.
Ikea announced a similar move for U.S. employees in 2021, hiking hourly wages to a range of $16-$18 depending on location, which took effect on Jan. 1, 2022. It also announced enhancements to its benefits packages that entitle employees for five weeks paid vacation, backup adult and child care, and education assistance.
Hourly wages continue to get more competitive across the board, with both Walmart and Starbucks recently announcing wage increases for its employees. However, Costco still has one of the highest starting pay rates at $18.50 an hour.
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