Massachusetts' minimum wage will rise from $8 to $9 on Jan. 1 under legislation signed yesterday, but workers at Ikea in Stoughton can look forward to a much bigger boost to $12.65.
The Swedish furniture retailer yesterday unveiled its own new U.S. minimum hourly wage rates that are based on store locations and calculated using the MIT Living Wage Calculator, which takes into consideration housing, food, medical and transportation costs, and annual taxes.
The wage hikes take effect Jan. 1 and will impact about half of Ikea U.S. retail workers, the company said.
"The transition to the new minimum hourly wage structure is not only the right thing to do, it makes good business sense," Rob Olson, acting Ikea U.S. president and CFO, said in a statement. "We are basing our wages on our co-workers and their needs, rather than what the local employment market dictates."
On average, the minimum hourly wage in U.S. Ikea stores will be $10.76 — $3.51 above the current federal minimum wage.
The increases were based on the MIT Living Wage Calculator for a childless single person. MIT professor Amy Glasmeier created the tool to determine wage rates required to meet minimum standards of living in particular communities.
Retailer Gap Inc. also is increasing its U.S. minimum hourly wage, announcing in February that it would raise it to $9 this year and $10 in 2015.
Massachusetts' minimum wage will hit $11 an hour by 2017. Gov. Deval Patrick said it will bring "a little relief to the working poor" who "recycle money right back into the economy."
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