Ikea will become first national retailer to pay above new living wage

Home furnishings retailer Ikea is set to pay its entire UK staff more than the national living wage when the new rate of pay comes into operation next year.

The company will pay employees at least £7.85 an hour from April next year – 9% more than George Osborne’s proposed National Living Wage of £7.20 an hour for those aged over 25.

The current minimum wage is £6.50 an hour for people aged 21 and over.

Ikea will pay all its employees the new higher wages, as set by the living wage foundation, regardless of age, making it the first national retailer to do so.

It will directly affect about half of its 9,000 UK employees, the BBC reports.

Living Wage Foundation director Rhys Moore said: “This is a huge step for the British retail sector and we hope that many other businesses will follow the leadership IKEA is showing on the issue of basic pay.”

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