IKEA has revealed plans for a pay rise for Irish employees, with the current hourly wages rising to €13.85.
The pay rise follows advice from the Living Wage Technical Group (LWTG) and will come into effect in January.
Formed in 2014, the LWTG tracks changes in the cost of living, calculating hourly rates that provide a “socially acceptable standard of living”.
The group is supported by a number of charities, trade unions and educational institutions.
The living wage increase will increase the wages of IKEA workers by an average of 6%.
The Swedish retailer also said eligible Irish team members would receive their bonuses by Christmas.
IKEA also doubled employee discounts to 30 items. The discount is available on the company’s line of home goods, as well as the in-store food marketplace.
“Recognizing the growing challenge posed by the rising cost of living, we are delighted to share some of the additional measures we are taking to ensure demand is met; and hope it will ease some of the pressure from the current climate,” Deputy National for the UK and Ireland Manager Marsha Smith said.
In October, discounter Lidl also unveiled plans to pay a living wage of €13.85 an hour from January.
Last week, Ingka Group, owner of IKEA stores, reported a 9% rise in annual operating profit after introducing a series of price increases to offset increases in raw materials, energy, transport and logistics.
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