January 1 will usher in more than just a new year. It’s the day that Ikea U.S. will increase starting pay for its American coworkers (the Swedish retail giant’s term for employees) to $16 per hour. That could go as high as $17 or $18 depending on the location of the store. The company says it will apply to full-time, part-time, temporary, and seasonal co-workers, which makes the average hourly wage $20. Ikea has approximately 17,000 workers in the United States.
Ikea U.S. will also offer expanded benefits that include a minimum of five weeks PTO, education assistance, back-up child and adult care, and more inclusive healthcare benefits.
This comes on the heels of a banner year for Ikea U.S., with a 25% increase in total sales to nearly $5.89 billion over the previous year. To show its appreciation for a successful 2021, the company also said that a majority of its U.S. co-workers will get a “One IKEA Bonus,” which is a performance-based payout totaling $76 million. That would be on top of the distribution of $17 million for the one-time Ingka global appreciation gift for all U.S. employees.