Ikea makes history with Living Wage announcement

Ikea makes history with Living Wage announcement

Furniture chain Ikea is the UK’s first national retailer to become an accredited Living Wage Employer, meaning it will pay workers at least £7.85 an hour from next April.

The Living Wage Foundation hailed the move as a “huge step for the British retail sector”, while around half of Ikea’s 9,000-strong national workforce is set to benefit.

The chain will be paying more than next year’s new compulsory ‘living wage’ of £7.20 an hour for over-25s, which the Foundation has described as “effectively a higher national minimum wage and not a living wage”.

Ikea will also be paying a higher living wage of £9.15 an hour to employees in London.



Rhys Moore, director of the Living Wage Foundation, said: “We are delighted with this momentous announcement that IKEA will be accrediting as a Living Wage employer.

“This is a historic moment in the life of the Living Wage movement, as IKEA become the first national retailer to announce their commitment to the Living Wage and they will reward all their staff with an hourly rate of pay that covers the cost of living.

“This is a huge step for the British retail sector and we hope that many other businesses will follow the leadership IKEA is showing on the issue of basic pay.”

Gillian Drakeford, Ikea’s UK and Ireland country manager, added: “We believe our people are the inner strength of our company, so it is only right to ensure we provide a meaningful wage that supports the cost of living.

“Introducing the Living Wage is not only the right thing to do for our co-workers, but it also makes good business sense. This is a long-term investment in our people based on our values and our belief that a team with good compensation and working conditions is in a position to provide a great experience to our customers.”

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