CONSHOHOCKEN, PA -  IKEA US announce it will raise its minimum hourly wage to $10.76, a $1.50 or 17% increase beginning January 1, 2015. The raise applies to about half its hourly workers.

IKEA US Raises Minimum Wage to $10.76 an HourThe new minimum will be $3.51 above the current federal minimum wage, and will vary based on the cost of living in each IKEA US location. IKEA will use MIT's Living Wage Calculator rather than determining wages based on the local competitive labor market. IKEA says wages thus become centered on the needs of the co-worker.

“The transition to the new minimum hourly wage structure is not only the right thing to do, it makes good business sense," said Rob Olson, IKEA US Acting President and CFO.  "We are basing our wages on our co-workers and their needs, rather than what the local employment market dictates."

Using the MIT Living Wage Calculator, which takes into consideration housing, food, medical and transportation and taxes, means the hourly wage will vary based on the cost of living in eachof IKEA US's 38 locations. It won't affect woodworkers: all five distribution centers, two service centers and a manufacturing facility already have hourly wage jobs that are paying minimum wages above the local living wage.