// Ikea has invested £12m into cost-of-living support for UK staff, which will include an average pay rise of 6%
// The firm’s owner Ingka Group has also vowed to lower prices for customers as input costs have started to ease
Ikea has ploughed £12m into a pay rise and wellbeing support to support hard-pressed employees during the cost-of-living crisis.
From January, salaried workers will receive an average 6% pay rise to £10.90 an hour, rising to £11.95 for those in London, which will put Ikea’s pay in line with the Living Wage.
Workers will also receive a one month’s salary as a bonus ahead of Christmas.
Staff discount has also doubled from 15% to 30% off and additional meals have been added to Ikea’s offer of free healthy meal options for workers.
The retailer will also offer workers a ‘no questions asked’ loan of up to £1000 of 10% of their salary, a 25% discount on public transport season tickets and access to a €10m (£8.6m) social fund managed by the Retail Trust.
Ikea UK and Ireland people and culture manager Darren Taylor 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.”
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Meanwhile, Ikea owner Ingka Group is planning additional price cuts as some input costs ease.
In its last financial year, the furniture giant was forced to hike prices in the face of soaring inflation.
However, retail operations manager Tolga Oncu told Reuters it planned to reduce prices going forward.
He said: “We are optimistic to continue focusing on lowering prices where we can. I am quite optimistic going forward.”
The moderation of input costs such as metal and sea transport will allow the homewares giant to cut prices, Oncu said, which would allow it attract new cost-conscious customers.
Ikea’s global sales increased 5.6% to €39.5 billion in its 2022 financial year and the UK was one of its top growth markets, as shoppers gravitated towards money-saving products.
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