IKEA, the Netherlands-based discount furniture darling, joined Macy's (M) - Get Macy's Inc Report and the raft of companies raising their minimum wage Tuesday, announcing a move to $16 an hour in the U.S.
Some workers will start at $17 or $18 depending on location. The new levels take effect Jan. 1 and will apply to full-time, part-time, temporary, and seasonal workers. That will lift the average hourly wage to $20 for Ikea workers.
Ikea also expanded its benefits package to include a minimum of five weeks of paid time away from work for all staffers, education assistance, back-up child and adult care, and more inclusive health care benefits.
Furthermore, in light of the company’s “strong” sales performance in fiscal 2021, a majority of U.S. workers will receive the “One IKEA Bonus,” a performance-based payout totaling $76 million, the company said.
Also Tuesday, Macy’s said it’s increasing its minimum wage to $15 an hour by next May and will expand education benefits, as the race for workers heats up among companies.
Once the pay increase is completed, the average base pay for the iconic department-store chain’s workers will be above $17 an hour. And average total pay will be $20 an hour, it said.
As for the benefits, beginning in February, Macy’s will provide a $35 million debt-free education program.
It will cover 100% of workers’ tuition, books and fees for high school completion, college prep, English language learning, associate and bachelor’s degrees, bootcamps and professional certificates.
Macy’s corporate and hourly staff also will receive one additional flexible paid holiday.