Ikea has injected £35m into a pay rise and bonus scheme to support staff through the ongoing cost-of-living crisis.

From January, hourly-paid workers will receive a 10% increase and salaried co-workers will see their pay jump by 5%, representing an investment of almost £10m.

Eligible employees will also receive a share of a £25.6m bonus pot, taking home at least an additional month’s pay ahead of Christmas.

Ikea has pledged to meet the new Real Living Wage, with hourly-paid staff within London stores receiving the new rate of £13.15 per hour and employees outside of London will receive £12 per hour.

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The £35m investment into pay follows a £12m cost-of-living support package the home and furniture retailer shared in January, which included an on average 6% pay increase and an enhanced benefits package to support employees during the cost-of-living crisis.

Ikea UK and Ireland country people and culture manager Darren Taylor said: “At IKEA, we’ve always been committed to caring for our co-workers, particularly during challenging times, which is why we’re announcing further investment to enhance their financial stability and security.

“Although we see inflation starting to ease, the cost-of-living continues to have a very real impact.

“We recognise that when our co-workers grow, so does IKEA, and our aim is to ensure that co-workers feel supported and valued through a variety of benefits that contribute to their financial, mental and physical wellbeing; supporting our vision to create a better everyday life for the many people.”

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