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Ikea lifting minimum wage to nearly $11 an hour

By By Aaron Smith
Published On: Jun 26 2014 08:13:25 AM CDT
Updated On: Jun 26 2014 03:45:51 PM CDT
Ikea
NEW YORK (CNNMoney) -

Ikea is acting on its own to lift the minimum wage, and it's doing it in a unique way: The U.S. average will be $10.76 and hour, but will be adjusted in different areas for cost of living.

Ikea workers in Woodbridge, Va., will get the highest, at $13.22 an hour.

Workers in Pittsburgh and West Chester, Ohio, will get the lowest, at $8.69.

The changes go into effect on Jan. 1, 2015.

The federal minimum wage is $7.25, though some states and cities pay more.

Massachusetts is on track to have the highest state minimum wage, taking it to $11 per hour by 2017, up from $8 today.

Seattle plans to raise the minimum hourly wage to $15 from $9.32. Businesses with fewer than 500 workers have until 2021 to phase it in.

On average, Ikea's pay change will be a 17% increase, the company said.

Ikea will base the pay differences on the MIT Living Wage Calculator, which takes into account the cost of housing, food, medical, transportation and taxes.

Ikea is a Swedish company with 38 stores in the U.S., and plans to open three more before the end of 2015.

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