IKEA Raises Its Minimum Wage To $10.76

June 30th, 2014
in econ_news

Written by , GEI Associate

IKEA, the largest furniture retailer in the world with 356 stores in 44 countries, announced that it will raise the average minimum wage for its workers in U.S. stores by 17%, from $8.97 to $10.76. The new average minimum wage is $3.51 higher than the federal minimum wage of $7.25.The change will take effect starting next year and will impact about half of IKEA's retail employees at the 38 stores nationwide.

Follow up:

The $1.79 increase in the minimum wage is only the average value, meaning that some states will see a larger change than others. IKEA used MIT's Living Wage Calculator, which displays the cost of a minimum standard of living in each city,to ensure that the amount of minimum wage hike is appropriate for each store location.

IKEA's new minimum wage policy will obviously reduce its profit margins, but Rob Olson, Vice President and Chief Financial Officer of IKEA U.S., said that IKEA does not plan to raise prices to make up for it, in an interview with The Huffington Post.

Olson told The Huffington Post:

"It's all centered around the Ikea vision, which is to create a better everyday life for the many people. The many people is, of course, our customers and consumers, but it's also our co-workers."

IKEA is not the first company that surprised us with a minimum wage increase this year. Gap Inc. announced in February that it would set the minimum wage for its U.S. employees at $9 an hour starting June and at $10 an hour starting next June, a move that was praised by President Obama.

A map of all the IKEA locations and the minimum wage for each state has been provided by USA Today:




Make a Comment

Econintersect wants your comments, data and opinion on the articles posted. You can also comment using Facebook directly using he comment block below.

 navigate econintersect .com


Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day


Asia / Pacific
Middle East / Africa
USA Government

RSS Feeds / Social Media

Combined Econintersect Feed

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution



  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2018 Econintersect LLC - all rights reserved