IKEA workers are in for a boost in pay in January as the Swedish furniture giant brings in an increase alongside a well-being support package to help staff amid the current cost of living crisis.
From the New Year, hourly paid workers will receive higher earnings as the hourly rate is being hiked to €13.85.
The Living Wage Technical Group (LWTG), which is supported by trade unions and charities, revealed last month that the hourly living wage rate should increase to €13.85 per hour to reflect the rising cost of living and IKEA has been one of the few major retailers to match it.
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Salaried IKEA co-workers will also receive a pay rise of six percent on average, in line with the retailer’s commitment to paying a fair and sustainable rate of pay - while every eligible member of the team will receive a bonus before Christmas.
According to a statement from the retailer it is also “ramping up its existing benefits package for co-workers, investing in additional financial, physical, and mental support measures, including a doubling of the co-worker discount to 30% across 2000+ home-furnishing articles which help to reduce energy, water, and food waste, more free food options in the co-worker restaurant, travel season ticket discounts, and more”.
Marsha Smith, Country Deputy Manager UK/IRELAND IKEA: “Our people are at the heart of the success of our business, and we have always been committed to paying a fair, sustainable rate of pay based on the cost of living. This year is no different.
“Recognising the increasing challenges brought by the rising cost of living, we are pleased to share some of the additional measures we are taking to ensure needs are met, and hope that it will ease some of the pressures of the current climate.
“By building on our existing co-worker benefits, and by heightening our focus in this area, we want to ensure that our colleagues feel supported during this challenging period.”
As the cost-of-living continues to impact families and their finances, IKEA is also investing in a wide range of enhanced support measures including:
- Co-worker discount has doubled (increasing from 15 percent to 30 percent) across 2,000+ products which help to save resources and reduce waste, including appliances, water-saving taps and LED bulbs, air purifiers, food containers; curtains; duvets; blankets and rugs, for example – as well as all items within the Swedish Food Market.
- In addition to the existing free healthy meal option, there will be more free food options for co-workers, including a free ‘winter warmer’ meal, cereals and porridge.
- Employees of more than six months will have the option of a flexible, no questions asked loan of up to €1,200, or up to 10 per cent of their salary.
- They can also apply to access a €10m Ingka IKEA ‘social fund’ – managed by the Retail Trust - set up to help those in need of one-off, non-repayable financial assistance.
- Season ticket discounts are increasing from 15 percent to 25 percent for those who take public transport to work.
- In addition to an ‘iBenefits’ portal with access to discounts on everyday items and essentials, co-workers also have access to a 24-hour helpline, facilitated by the Retail Trust.
Pay increases for all eligible co-workers and access to the loan and Ingka IKEA Social Fund will come into effect in January 2023.
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