Ikea is set to award its salaried employees a 5% pay rise in 2024, as well as adopting the new recommended Living Wage rates for its hourly-paid staff.
It is set to invest almost an additional £10m in pay next year, the Swedish furniture retailer claimed.
Many employees are also set to receive an year-end bonus of at least a month’s pay through its “One Ikea” bonus scheme. The £25.6m bonus pot recognises employees’ important contribution to its strong business performance in 2023 despite challenging market conditions, Ikea said.
The Living Wage Foundation’s recommended 10% uplift for hourly paid staff, which takes pay to £13.15 per hour in London and £12 per hour outside of London, will be implemented in two 5% pay increases in 2024.
Last year, the retailer also introduced an ‘outer London’ rate for over 1,300 co-workers based in its Lakeside, Reading and Milton Keynes stores, which will increase from £11.45 per hour to £12.60 in 2024, exceeding Living Wage Foundation rates in these areas.
Darren Taylor, country people and culture manager for Ikea UK & Ireland said: “At Ikea, we’ve always been committed to caring for our co-workers, particularly during challenging times, which is why we’re announcing further investment to enhance their financial stability and security.
“Although we see inflation starting to ease, the cost-of-living continues to have a very real impact. We recognise that when our co-workers grow, so does Ikea, and our aim is to ensure that co-workers feel supported and valued through a variety of benefits that contribute to their financial, mental and physical wellbeing; supporting our vision to create a better everyday life for the many people.”