Ikea to introduce €14.80 hourly ‘living wage’ for Irish staff

Martyn Allen, market manager for Ikea Ireland, said the company wants to “set itself apart” from its competitors and said a fair wage will “help Ireland prosper even further”.

The move works out at a 6.9pc hike for all hourly paid workers at Ikea in Ireland, up from €13.85 currently.

More than 500 of Ikea’s total 730-strong workforce are expected to benefit from the pay hike.

A pay review for salaried workers is to follow later this year.

“The investment in our co-workers is really key for us, and hopefully we’ll be able to recruit easier and then the retention will be better as well,” Mr Allen said. “Happy co-workers equals happy customers equals happy business, I think.”

The living wage – the minimum hourly pay required to cover the actual cost of living, which the Government has set at 60pc of hourly median earnings – was introduced in 2022 and is to be phased in by 2026, when it will replace the national minimum wage.

The national minimum wage is €11.30 per hour for 2023. An independent living wage technical group has calculated the living wage at €14.80 per hour for this year and next.

Mr Allen said Ikea will also be allowing staff more flexible shifts and time off for important events.

“It can be something really simple, like finishing their shift little bit early so they are able to get the bus home. It might be that they want the same day off every week to help with childcare. We have lots of students who get a little bit stressed around May/June time; they can reduce their hours during that time and pick them back up after the exams are finished.”

While many firms have laid out their wish lists ahead of tomorrow’s Budget, Mr Allen said Ikea had no major asks beyond a “strong economy”.

“I think we agree that a strong economy is good for the people of Ireland and it’s also good for business in Ireland as well. We very much want a strong economy, but we also want everyone to get a fair wage as well throughout Ireland and that will help Ireland prosper even further.”

He said Ikea would be opening another five ‘plan and order’ points in Ireland and a distribution centre and was “always looking” at further expansion.