IKEA now a Living Wage employer

Ikea, the Swedish-owned multinational, has become the first major retailer in the UK to commit to becoming a Living Wage accredited employer.

The retail store's accreditation will see all employees across the UK receive a basic rate of pay of at least £7.85 an hour while employees in the capital will be paid the London Living Wage rate, currently £9.15 an hour.

Rhys Moore, director of the Living Wage Foundation, said: “This is a huge step in the life of the Living Wage movement and sends out a clear marker to the sector that businesses that can, should pay the voluntary rate, which is calculated according to the cost of living.”

The Living Wage is a mark of responsible businesses, with accredited Living Wage companies choosing to go above and beyond the legal minimum.

The numbers of accredited employers is growing at some pace. The Living Wage Foundation said there are now over 1,600 accredited businesses, including nearly a quarter of the FTSE 100 and well-known companies, such as Nestlé, Nationwide and British Gas.

It was only in early June that OVO Energy became the 1,500th accredited employer.

As the Living Wage Foundation has pointed out the Living Wage remains key to tackling in-work poverty in the UK, despite chancellor George Osborne’s introduction of a higher National Minimum Wage for workers aged 25 and over.

www.livingwage.org.uk