December 5, 2023: In a significant move demonstrating its commitment to employee welfare, Ikea GB has announced a substantial pay rise for its UK staff, amounting to a whopping £10 million. This initiative is part of a larger investment exceeding £35 million, dedicated to enhancing wages and bonuses for its diligent workforce.
The renowned furniture retailer, a household name for over 35 years in the UK, has declared that its hourly paid employees will receive a 10% pay increase in 2024. This increment, which will be implemented in two phases of 5% each, is based on the current pay scales of the employees. This adjustment will elevate the hourly wages to £12, and an even higher £13.15 for those stationed in London.
Ikea’s presence in Britain is robust, with 20 major stores and an additional smaller city outlet in London. The pay rise initiative ensures that Ikea’s employees will earn significantly more than the national living wage, which currently stands at £10.42 for workers aged 23 and over. This figure is set to increase to £11.44 in April next year and will be extended to include 21 and 22-year-old young workers for the first time.
In 2022, Ikea had pioneered an “outer London” rate for over 1,300 staff members in Lakeside, Reading, and Milton Keynes. This rate, initially set at £11.45, is slated to rise to £12.60 in 2024. Additionally, staff on fixed salaries are set to receive an average pay rise of 5%. Collectively, these measures will cost Ikea nearly £10 million.
Furthermore, Ikea has planned to distribute a generous end-of-year bonus to all eligible staff, equivalent to at least one month’s pay. This bonus, amounting to £25.6 million across the UK, is a part of the £35 million investment pool, which also includes the wage increases. This gesture is a recognition of the employees’ significant contribution to the company’s robust financial performance last year, despite the challenging market conditions.
Globally, Ikea’s parent company, Ingka Group, reported a staggering 41.7 billion euros (£36 billion) in retail sales in the last financial year.
Darren Taylor, the People and Culture Manager for Ikea UK, commented on this development. He emphasized Ikea’s longstanding commitment to caring for its co-workers, especially during difficult times. “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,” he stated. He also acknowledged the ongoing impact of the cost of living, despite signs of inflation easing.
The Workers Union Says…
“This move by Ikea sets a benchmark in the retail industry, highlighting the importance of investing in employee well-being and financial security. It’s a testament to the company’s ethos of valuing its workforce and acknowledging their pivotal role in the company’s success.”
