Retailer Ikea has awarded its UK employees with pay increases that reflect the cost of living, as well as year-end bonuses based on the last year’s performance in a more than £35 million investment.
Hourly-paid staff will receive a 10% pay increase in 2024, while salaried workers will see a rise of 5% on average. This represents an investment of almost £10 million and is in line with Ikea’s commitment to offer a fair and sustainable rate of pay.
Eligible employees will also receive a year-end bonus of at least a month’s pay in time for Christmas through the One Ikea Bonus programme. The £25.6 million bonus pot recognises contributions to business performance despite challenging market conditions.
Additionally, Ikea, which is an accredited Living Wage Foundation employer, has pledged to meet the new real living wage, with hourly-paid London workers receiving £13.15, while those across the UK will get £12.
Meanwhile, its outer London rate, which the retailer introduced last year for 1,300 staff based at its Lakeside, Reading and Milton Keynes stores, will increase from £11.45 per hour to £12.60 in 2024. Full-time employees outside of London are set to earn £1,136 a year more than those on the government’s new national living wage, with those in the new outer London range earning £2,352 more and those in London receiving £3,468 more.
Darren Taylor, country people and culture manager at Ikea UK and Ireland, said: “At Ikea, we’ve always been committed to caring for our staff, 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 employees grow, so does Ikea, and our aim is to ensure that 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.”