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Ikea Raising Starting Pay to $16 Per Hour Starting in 2022

Ikea Raising Starting Pay to $16 Per Hour Starting in 2022
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  • Ikea is increasing its base wage to $16 an hour starting in 2022.
  • The company announced Tuesday morning that this applies to all US IKEA locations.
  • When the increase takes effect, the average wage for Ikea workers will be $20 an hour.

IKEA on Tuesday announced an increase in its base wage to $16 an hour.

The move takes effect January 1, 2022, and will raise the average employee’s wages to $20 an hour. In some locations in the US, the base pay will start at $17 or $18 an hour.

In addition to increasing salaries for new employees, Ikea is giving existing employees increased benefits: “A minimum of five weeks of paid time away from work for all co-workers, educational assistance, child and adult care backup, and more,” the company said in a press release. comprehensive health”.

The company said the wage increase will affect all IKEA employees, including part-time and seasonal employees.

Ikea is the latest US retail chain to raise wages — partly in response to employees across the retail and service sectors who have quit en masse, and partly to competition from workers from the likes of Amazon and Walmart.

Chains have struggled to attract workers as millions of Americans rethink their relationship to work amid the ongoing global pandemic. Increasing wages and benefits, as Ikea does, is one of the main ways companies have sought to bring workers back.

“We will continue to seek opportunities to grow our compensation and benefits offering and share our success with our co-workers,” said Ikea US CEO Javier Quiñones. Ikea employs more than 17,000 people in the US – a number that will surely amplify with the upcoming holiday season.

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