IKEA to offer $16 an hour starting pay to new U.S. employees

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(ABC4)- Workers at IKEA U.S. will soon receive starting wages between $16 and $18 an hour depending on location.

A press release from the company says the new wage policy will take place Jan. 1, 2022. It will apply to full-time, part-time, temporary, and seasonal co-workers in the United States. The new wages will bring the average hourly wage in the company to $20 an hour.

Aside from increasing wages, IKEA U.S. is also changing its benefits and compensation packages. All employees will now receive five weeks of paid time off from work. They will also receive education assistance, back-up child and adult care, and “more inclusive health care benefits.” The company is extending these benefits as a sign of appreciation to their workers.

“Every day I am humbled by our 17,000 co-workers, each of whom makes our success as a company possible and contributes to our commitment to creating better homes, better communities, and a better planet,” CEO & Chief Sustainability Officer for IKEA U.S Javier Quiñones said. IKEA U.S. will continue to find ways to expand compensation and benefits to show their appreciation to employees, Quiñones continued.

The company will also implement a new performance-based payout for the majority of workers in the U.S. The payout will total $76 million in addition to a “one-time Ingka global appreciation gift” of $17 million that all U.S. workers will receive. The payout is made possible by strong sales in fiscal year 21, according to the press release.

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