IKEA workers in Milton Keynes to receive pay rise to take them £1 above national minimum wage

Workers at IKEA in Bletchley are to pocket a 6% pay rise in January as part of the retailer’s £12 million investment to support staff through the cost-of-living crisis.

The store, which employs 410 people, is opting to pay the Real Living Wage as oppose to the National Minimum Wage.

From January eligible salaried IKEA members of the team throughout the UK and Ireland will receive £10.90 an hour.

Meanwhile, the staff will receive a bonus of approximately one month’s salary in time for the festive season.

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

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% of their salary.

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

Currently the National Living Wage for people aged 23 or over (National Living Wage is £9.50. For people aged 21 to 22 it is £9.18 and for those aged 18 to 20 it’s £6.83. These amounts are set to rise in April next year to £10.50, £10.18 and £7.49 respectively.

The Real Living Wage, which is set by the Living Wage Foundation charity, is currently £11.95 per hour in London and £10.90 elsewhere in the UK. This reflects what the charity thinks people need to earn to cover everyday needs.