Ikea co-workers in Scotland to receive pay boost as part of wider £12M investment to help with cost-of-living

Ikea workers celebrating the wage increase

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IKEA co-workers in Scotland are set to receive a pay increase as part of the retailer’s £12 million investment to support its people through the cost-of-living crisis.  

Co-workers will further benefit as the retailer also introduces a broad range of support measures across the UK & Ireland.

As one of the few major retailers to match the new Living Wage Foundation rate, hourly paid co-workers will receive a boost in earnings – £10.90 in Scotland – as part of IKEA’s continued pledge to pay the Real Living Wage. 

Eligible salaried co-workers in Scotland will receive a pay rise of six per cent on average, in line with the retailer’s commitment to paying a fair and sustainable rate of pay.

The retailer is also ramping up its existing benefits package for co-workers, investing in additional financial, physical, and mental support measures, including increased discounts on IKEA products which reduce waste, more free food options in the co-worker restaurant, travel season ticket discounts, and more.

In addition to the cost-of-living investment, to recognise exceptional performance, all eligible members of the team throughout the UK and Ireland will receive a bonus – of approximately one month’s salary – in time for the festive season.

Darren Taylor, Country People & Culture Manager, IKEA UK & Ireland: “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.”

As the cost-of-living continues to impact families and their finances across the UK and Ireland, IKEA is investing in the following enhanced support:

  • Co-worker discount has doubled (increasing to 30 per cent up from 15 per cent) across 2,000 ‘People and Planet Positive’ items – products which help to save resources and reduce waste, including appliances, water-saving taps and LED bulbs, food containers; curtains; duvets; blankets and rugs, for example – as well as all items within the Swedish Food Market
  • In addition to the existing free meal option for co-workers, there will be more free food options at the co-worker restaurant, including free cereals, porridge and a free ‘winter warmer’ meal option in addition to a healthy meal option, which is already available to co-workers at no charge.
  • Employees of more than six months will have the option of a flexible, no questions asked loan of up to £1,000, or up to 10 per cent of their salary.
  • They can also apply to access a €10m Ingka IKEA ‘social fund’ – managed by the Retail Trust  – set up to help those in need of one-off, non-repayable financial assistance
  • Season ticket discounts are increasing from 15 per cent to 25 per cent for those who take public transport to work.
  • In addition to an ‘iBenefits’ portal with access to discounts on everyday items and essentials, co-workers also have access to a 24-hour helpline, facilitated by the Retail Trust.

Katherine Chapman, Director of the Living Wage Foundation, said: “Since joining the Living Wage Foundation in 2016, we’re delighted that IKEA continues to show real leadership on pay in retail. We all need a wage that meets our everyday needs, and in paying a real Living Wage to co-workers IKEA will provide them, and their families, with security and stability now and in the months ahead. During this cost-of-living crisis, it’s never been more important for workers to earn a real Living Wage, calculated based on the cost of living.”

Pay increases for all eligible UK & Ireland co-workers and access to the loan and Ingka IKEA Social Fund will come into effect in January 2023.

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