Ikea Commits £10 Million for 2024 Pay Raises for UK Employees

Ikea has announced it will increase the pay of its UK staff by £10 million in 2024, involving a 10% wage boost for hourly workers. This move is part of a larger £35 million investment that includes higher salaries and bonuses.

Hourly wages will rise to £12, and £13.15 in London, following two 5% increases throughout the year.

Ikea, which has been operating in the UK for over 35 years with 20 stores and a smaller venue in London, ensures its employees earn above the national living wage of £10.42—an amount set to increase to £11.44 in April next year.

Last year, Ikea set a special rate for employees in certain locations like Lakeside, Reading, and Milton Keynes.

For fixed-salary staff, the company is rolling out an average 5% pay rise, totaling almost £10 million.

Additionally, Ikea will distribute end-of-year bonuses to qualified staff, equivalent to at least one month's salary, totaling £25.6 million across the UK.

This bonus, alongside the wage increases, rewards staff for their contribution during a year of strong financial performance amidst a tough market.

Darren Taylor, from Ikea UK, affirmed the company’s dedication to supporting employees financially, particularly in light of ongoing cost of living challenges and inflation.