Using MIT's Living Wage Calculator, the company will have a minimum wage based on the geographic area of each store beginning Jan. 1, according to media reports, including The Huffington Post.
That would put Ikea's average minimum wage at $10.76 an hour, but the company notes the minimum wage will go over $13 an hour in some markets. The MIT calculator puts Prince William County's "living wage" at $13.22 an hour.
Virginia's minimum wage is at $7.25 an hour, matching the federal minimum wage. Washington, D.C.'s minimum wage climbs to $9.50 an hour beginning Tuesday.
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The new minimum hourly wage will not increase Ikea prices, the company tells the New York Times.
Rob Olson, Ikea’s acting president for the United States and its chief financial officer, said the move is about improving the lives of employees.
“We are of course investing in our co-workers," Olson told the Times. "We believe they will invest in our customers, and they will invest in Ikea’s stores."