Ikea is increasing its starting pay to $16 per hour starting in 2022

Advertisement
Ikea is increasing its starting pay to $16 per hour starting in 2022
An Ikea employee and customer discuss an Ikea product inside of an Ikea. Artyom Geodakyan\TASS/Getty Images
  • Ikea is increasing its base pay to $16 per hour starting in 2022.
  • That applies to all US Ikea locations, the company announced on Tuesday morning.
Advertisement

Ikea is increasing its base pay to $16 per hour, the company announced Tuesday.

The move goes into effect on January 1, 2022, and will raise its average employee pay to $20 per hour. At some locations in the US, base pay will start at $17 or $18 per hour.

In addition to the pay increase for new employees, Ikea is giving existing staff a benefits increase: "a minimum of five weeks of paid time away from work for all co-workers, education assistance, back-up child and adult care, and more inclusive health care benefits," the company said in a press release.

Complimentary Tech Event
Transform talent with learning that works
Capability development is critical for businesses who want to push the envelope of innovation.Discover how business leaders are strategizing around building talent capabilities and empowering employee transformation.Know More

The pay increase will impact all Ikea employees, including part-time and seasonal staff, the company said.

Ikea is the latest retail chain the US to increase wages - a response in part to employees across the retail and service industries quitting en masse, and in part to competition for workers from the likes of Amazon and Walmart.

Advertisement

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

"We will continue to seek opportunities to grow our compensation and benefits offer and share our success with our co-workers," Ikea US CEO Javier Quiñones said. Ikea employs over 17,000 people in the US - a number that will assuredly swell with the upcoming holiday season.

Got a tip? Contact Insider senior correspondent Ben Gilbert via email (bgilbert@insider.com), or Twitter DM (@realbengilbert). We can keep sources anonymous. Use a non-work device to reach out. PR pitches by email only, please.

{{}}