Ikea is to increase the pay of its workers as part of an investment to support workers through the cost-of-living crisis. 

Ikea workers Wembley

The Swedish company’s wage strategy is to “enhance co-workers’ financial stability and security” in 2024

The home and furniture giant is boosting the pay of hourly workers by 10%, and salaried workers by 5%, as part of a £35m investment. 

Eligible workers will also receive a share of a £25.6m bonus pot, taking home at least an additional month’s pay ahead of Christmas. 

The retailer has pledged to meet the new Real Living Wage, with hourly-paid workers in London stores receiving the new rate of £13.15 per hour, while workers in the rest of the UK will receive £12.00 per hour. 

Darren Taylor, Ikea UK & Ireland country people and culture manager, 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.”

The increase will take effect next year, and hourly workers’ pay will be implemented in two 5% uplifts.