Ireland’s Guide To Money And Living

Living on a wage

Living wage

IKEA Ireland recently announced that, since April 1st, all of its 413 employees are being paid the Living Wage of €11.50 per hour. They join retailers Lidl and Aldi who announced that identical measures would come into effect for their own workforces late last year and early in 2016 respectively. IKEA has said that the move has come as part of an endeavour to ensure their employees have the right levels of pay, the right contracts and appropriate schedules.

“At IKEA we believe in investing in our co-workers and this latest initiative is a further example of our continued commitment to co-worker development and conditions. We know that introducing the Living Wage will have real and lasting benefits for our co-workers,” said Marsha Smith, Store Manager, IKEA Dublin. “Implementing the Living Wage is not only the right thing to do for our co-workers but it also makes commercial sense. It is vital to the ongoing success and sustainability of the business that we retain co-workers as well as attract the top talent in the local marketplace. Furthermore, we believe that a team with good compensation and excellent working conditions will continue to provide our customers with a great shopping experience.”

At present, following a recent increase, the Irish minimum wage now stands at €9.15. The Living Wage Technical Group has, however, calculated the living wage at €11.50 – the amount required by people to maintain a proper standard of living and a more comfortable lifestyle.

In a document produced last year by the Group, it was noted that “Unlike the National Minimum Wage, the Living Wage is an evidence based rate of pay which is grounded in social consensus. It is derived from Consensual Budget Standards research, which establishes the cost of a Minimum Essential Standard of Living in Ireland today.”

When not writing about all things personal finance, You & Your Money's editor Conor Forrest enjoys reading, football and getting lost in an ocean of Wikipedia articles.