While many retail and food services employees continue to protest for a higher minimum wage, and state and federal governments scramble to make decisions on the issue, one big retailer has taken it upon themselves to bump up the minimum wage. Ikea has decided to lift the minimum wage for its employees, and adjust it based on the cost of living in each area where their stories are located. The U.S. average will be $10.76 an hour.
Across the company, this will be an average of 17 percent increase for Ikea employees. In order to determine different pay scales for different locations, Ikea used the MIT Living Wage Calculator. This calculator considers the cost of housing, food, medical services, and transportation in that area.
The Woodbridge, Virginia, location will receive the highest wage: $13.22 an hour. Pittsburgh and West Chester, Ohio, will receive the lowest: $8.69. Even this lowest wage is over a dollar more than federal minimum wage, which is $7.25. These wage changes will go into effect January 1st, 2015.