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UK IKEA staff to receive bonus and pension boost

IKEA workers in the UK will get a bonus of up to 10% of their salary as the world's largest furniture retailer thanked them for a bumper year.

IKEA explained that the move follows an 11% sales hike in the financial year 2014.

The One IKEA Bonus programme, which was launched in September 2013 and is an annual performance-related bonus system linked to individual salary and store performance, means a full-time co-worker on an hourly start rate of £7.13 ($11.18, €9.08) will receive an extra £1,446 (based on the best performing unit).

"We also want to thank and reward our co-workers for what has been a fantastic year of growth here in the UK," said Gillian Drakeford, IKEA UK and Ireland.

"This growth did not come by itself but through the contribution of every one of our co-workers working together towards our business goals.

"We believe that the One IKEA Bonus, together with our base salary forms an extremely strong compensation offer for our co-workers, make IKEA an even more attractive place to work."

The employer also announced €200m in global funding for its loyalty programme "Tack!".

The initiative rewards everyone who has been with IKEA for more than five years with an annual contribution to their individual pension plans, assuming that pre-agreed global sales targets are reached.

The IKEA Group made a one-time initial contribution of €100m and for financial year 2014 and a further €100m has been allocated.

All eligible workers in the UK will receive the same proportional amount in relation to hours worked, regardless of unit, position or salary level.

This means each qualifying full-time employee will receive a lump sum of £1,229 into their pension pot, equivalent to more than one month's pay for co-workers on an hourly start rate of £7.13.

With more than 47% of UK co-workers at five or more year's service, over 3,700 co-workers are eligible for the first pay-out.

Source : Ian Silvera - International Business Times

05 December 2014

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