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IKEA to raise starting wages to $16 an hour for all employees

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(WXYZ) — All IKEA workers in the United States will receive a pay raise of at least $16 an hour according to the furniture retail company.

According to IKEA, some wages will start at $17 or $18 depending on location. This raise brings the average hourly wage to $20.

The new wage comes into effect on Jan. 1 and will apply to full-time, part-time, temporary, and seasonal co-workers.

“Every day I am humbled by our 17,000 co-workers, each of whom makes our success as a company possible and contributes to our commitment to creating better homes, better communities, and a better planet,” CEO & Chief Sustainability Officer at IKEA U.S. Javier Quiñones said. “I am proud of everything we have accomplished over the past year, and we will continue to seek opportunities to grow our compensation and benefits offer and share our success with our co-workers.”

In addition to the wage increase, the company is also upgrading its employee benefits package. It will now include at least five weeks of paid time off, education assistance, backup child and adult care, and more inclusive health care benefits.