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An IKEA employee with a hand truck restocking in the stores Self-service area

Our approach to a fair income – How we work with living wage

As Ingka Group, operating in 32 markets with 165,000 co-workers, we believe one of our main responsibilities is to provide fair income to all our co-workers as part of our total package.

How we work with a living wage

A living wage ensures that all co-workers earn at least a base pay that supports them and their families to afford a modest, yet decent life. This means that at a minimum they can afford to cover basic needs including food, housing, transport, health, education and other unforeseen costs. Ingka Group’s annual living wage assessment is based on data provided by the non-profit WageIndicator Foundation. Each annual assessment assures all Ingka Group co-workers are paid at or above the recommendation from WageIndicator Foundation. We also work with additional third-party platforms in some markets. We view a living wage as a minimum, not a target.

IKEA co-worker with store uniform.

Living wage is one part of an approach we call Responsible Wage Practices

Our Responsible Wage Practices approach – developed in collaboration with Inter IKEA Group and applied internally across Ingka Group – puts equal focus on living wage, equality at work, dialogue, competence and pay principles.

Equality at work: Our policy commits to equal pay for work of equal value, equal access to work and career development opportunities.

Dialogue: This ensures that information is shared, dialogue exists to guarantee that common and individual interests are listened to.

Competence: This is about ensuring co-workers, managers and management teams are clear on Responsible Wage Practices.

Pay principles: These are systems and processes to ensure accuracy, reliability, transparency and legal compliance.

A fair income is at the core of our total rewards package. As a part of this we aim to offer our co-workers equal-for-all core benefits and flexible benefits, such as paid time off, parental leave, insurances, pension, with additional options depending on country. All co-workers are rewarded based on their contribution to the company’s success.

Guided by our culture and values, we know that fair income and the company’s total rewards offer is important to co-worker wellbeing and helps support a more inclusive workplace and long-term business performance.