IKEA Raises Minimum Wage for US Workers Second Year in a Row

Ikea’s U.S division is raising the minimum wage for the second year in a row as the Swedish ready-to-assemble furniture chain looks to improve its relations with workers and reduce worker turnover.

FILE - In this Aug. 27, 2014 file photo, store employees clap balloons together as IKEA, the world’s leading home furnishings retailer, opens the doors to its first Miami-Dade store to customers in Sweetwater, Fla. AP Photo/J Pat Carter, File

NEW YORK — IKEA’s U.S. division is raising the minimum wage for the second year in a row as the Swedish ready-to-assemble furniture chain looks to improve its relations with workers and reduce worker turnover.

Starting Jan. 1, IKEA’s average minimum hourly wage will increase to $11.87, which is $4.62 above the current federal wage and marks a $1.11 increase, or 10 percent, from this year’s average minimum pay.

The increase will affect 32 percent of IKEA’s 10,500 U.S. store workers and will raise the average hourly wage to $15.45. That’s up from the current $14.19 per hour. The increase also covers workers in some distribution centers.

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