IKEA Ireland enhances co-worker work-life balance and commits to €14.80 Living Wage
As one of few major retailers in Ireland, IKEA has aligned with the voluntary pay rate independently determined by the Living Wage Technical Group since 2017, as part of the longstanding commitment to pay a wage that reflects the true cost of living. Unlike the Government's minimum wage, the Living Wage is independently calculated to reflect the true cost of living.
Starting from January, all hourly paid co-workers at IKEA Ireland will receive a pay increase of the new Living Wage of €14.80. This adjustment results in a significant 6.9% raise, increasing the hourly rate by 95 cents from the previous €13.85 to the new €14.80. This change translates to an approximate annual pay increase of €2,000 for a full-time co-worker and over €7,000 more a year when compared to the 2023 National Minimum Wage.
No other nationwide retailer has announced implementing the increased salary as early as January, making the over 500 IKEA Ireland co-workers benefiting from the increase the first ones employed by a major retailer to receive the new Irish Living Wage.
IKEA has always been dedicated to creating a better everyday life for the many people. This extends to our co-workers, who play a crucial role in our success. By raising the hourly co-worker pay to the new living wage rate, we are reaffirming our commitment to their wellbeing and financial security.”
Martyn AllanMarket Manager, IKEA Ireland
Introducing a Flexible Work Approach
In addition to the commitment to fair pay, as a recognition of the importance of work-life balance and flexibility, IKEA has introduced a new flexibility approach for co-workers in Ireland.
This flexibility initiative offers co-workers a much greater choice in how they work, based on their personal needs and life situations. Co-workers can for example enjoy flexibility in contract sizes and shift patterns, the option to work compressed hours, and the ability to reduce hours temporarily during significant life events, such as student exams. Since the start of the flexibility initiative in April 2023, almost 40% of all co-workers have had changes made to their contracts based on their wishes and needs.
Martyn Allan continued: "The flexibility initiative is part of a longer-term plan to deliver more choice for our co-workers. It supports our omni-channel growth ambitions as we continue improve and introduce more ways for our customers to shop at IKEA.
"By giving our co-workers greater autonomy to determine their own work-life balance, including more control over schedules and contracts, we've seen a notable boost in their satisfaction. This positive change has not only benefited our team members but has also translated into a more engaged workforce and a substantial decrease in co-worker turnover – a win-win for our co-workers and our business."