Ikea has invested £12 million in a pay increase and wellbeing support package, in order to help its UK and Ireland during the cost-of-living crisis.
Salaried staff have been given a 6% on average pay rise, which will come into effect as of January 2023. Meanwhile, hourly paid workers in London have been given a pay boost to £11.95, and those across the UK will receive £10.90.
In addition, Ikea stated that every eligible employee will receive a bonus worth approximately one month’s salary before the end of the year, to recognise their contribution to the business’ performance over the past year.
The retailer doubled the staff discount to 30% across home-furnishing articles that reduce energy, water and food waste. In addition, it introduced more free food options for staff, such as a free winter warmer meal, cereals and porridge, increased season ticket discounts from 15% to 25%, and provided access to a 24-hour helpline facilitated by the Retail Trust.
Furthermore, employees with more than six months of service have been given the option to access a flexible loan of up to £1,000, or up to 10% of their salary. They can also apply to access a €10 million Ingka Ikea social fund managed by the Retail Trust, which was set up to help those in need of one-off, non-repayable financial assistance.
Darren Taylor, country people and culture manager at Ikea UK and Ireland, said: “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 the focus in this area, we want to ensure that our colleagues feel supported during this challenging period.”