Friday, October 20, 2017

Ikea becomes latest to subscribe to new Living Wage rates

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Flat-pack furniture giant Ikea has promised to pay UK staff the newly-increased voluntary Living Wage.

This follows an announcement earlier this week that the Living Wage Foundation had introduced the “Real Living Wage” at £8.45 an hour, 2.4 per cent more than the previous £8.25.

They also announced a new London Living Wage of £9.75 with the support of London Mayor Sadiq Kahn.

Ikea will now pay staff nearly 20 per cent above the National Minimum Wage, prompting the Living Wage Foundation to name the Swedish retailer a “Living Wage champion”.

READ MORE: The National Living Wage & National Minimum Wage explained

They join the 3000 businesses who voluntarily subscribe to these rates including Curzon Cinemas and EDF. #

The rate is calculated to represent the true cost of living, and MPs are set to debate the void between it and the Minimum Wage in the House of Commons today. 

“Introducing the living wage is not only the right thing to do for our co-workers, but it also makes good business sense,” Ikea UK country HR manager Pernille Hagild said.

“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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