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Our approach to a fair income – How we work with living wage

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As an employer operating in 31 markets with 165,000 co-workers, we believe one of our main responsibilities is to provide fair income to all co-workers as part of our total package.

How we work with a living wage

A living wage ensures that all co-workers earn at least a base pay that supports them and their families to afford a modest, yet decent life. This means that at a minimum they can afford to cover basic needs including food, housing, transport, health, education and other unforeseen costs. Ingka Group’s annual living wage assessment is based on data provided by the non-profit WageIndicator Foundation. Each annual assessment assures all Ingka Group co-workers are paid at or above the recommendation from WageIndicator Foundation. We also work with additional third-party platforms in some markets. We view a living wage as a minimum, not a target.

Living wage is one part of an approach we call Responsible Wage Practices

Our Responsible Wage Practices methodology puts equal focus on living wage, equality at work, dialogue, competence, and pay principles.

Equality at work: This ensures that co-workers receive equal pay for work of equal value, and have equal access to work and career development opportunities.

Dialogue: This ensures that information is shared, dialogue exists to guarantee that common and individual interests are listened to.

Competence: This is about ensuring co-workers, managers and management teams are clear on Responsible Wage Practices.

Pay principles: These are systems and processes to ensure accuracy, reliability, transparency and legal compliance.

A fair income is at the core of our total rewards package. As a part of this we aim to offer our co-workers equal-for-all core benefits and flexible benefits, such as paid time off, parental leave, insurances, pension, with additional options depending on country. All co-workers are rewarded based on their contribution to the company’s success.

Guided by our culture and values, we know that fair income and the company’s total rewards offer is essential to improving the wellbeing of all co-workers and at the heart of building a more inclusive, successful business.