Ikea to introduce "living wage” for all staff next year

Ikea to introduce "living wage” for all staff next year

The Swedish flat-pack furniture store Ikea is to introduce a “living wage” for staff at their one Irish outlet from next year as part of plans to offer “meaningful” pay to all workers.

The chain, whose single Irish outlet is at Ballymun in Dublin, will start setting pay cheques based on the cost of living – rather than the minimum wage – for employees in both the Republic and the UK.

The living wage is considered the amount a worker needs to earn to cover the basic costs of living.

In Ireland it currently stands at €11.50 per hour, almost €3 more than the current minimum wage of €8.65 per hour.

The company announced this morning it would be introducing the living wage for all employees in Ireland and the UK.

Pernille Hagild, IKEA UK and Ireland HR Manager said: "As a values driven organisation we believe in providing a meaningful wage to our co-workers that supports the cost of living no matter where they live.

"We are committed to paying the Living Wage to our co-workers in Ireland by April 2016.

"Over coming months we will work together with the relevant organisations and authorities in Ireland to secure we deliver this in the right way in the Irish market."

It comes as the government weighs lifting the national minimum wage from €8.65 per hour after a recommendation from the new Low Pay Commission that the rate be increased 50c.

A consortium of unions and other campaigners have put the living wage for Ireland at €11.50 per hour, although it’s not yet known on what basis Ikea will calculate its rate.