Swedish home furnishing retailer IKEA has invested more than £35m ($44.28m) in the financial well-being of its employees in the UK.

From 2024, hourly-paid workers will receive a 10% increase and salaried co-workers will see their pay increase by 5%, representing an investment of almost £10m.

The retailer will also give a share of a £25.6m bonus pot to eligible employees ahead of Christmas.

IKEA has also pledged to meet the new "real living wage" (RLW), with hourly-paid staff in London stores receiving the new rate of £13.15 per hour, while employees outside London will receive £12 per hour.

The new rate will see full-time IKEA co-workers outside London earn £1,136 more annually, and those in the new outer London range £2,352 more.

Co-workers in London on the region-specific RLW will receive £3,468 more per year, once the rise has been fully implemented.

The latest investment comes after IKEA invested £12m in January 2023, raising the average pay of workers by 6%.

IKEA UK and Ireland country, people and culture manager Darren Taylor stated: “At IKEA, we’ve always been committed to caring for our co-workers, particularly during challenging times, which is why we’re announcing further investment to enhance their financial stability and security.

“Although we see inflation starting to ease, the cost of living continues to have a very real impact. We recognise that when our co-workers grow, so does IKEA, and our aim is to ensure that co-workers feel supported and valued through a variety of benefits that contribute to their financial, mental and physical well-being, supporting our vision to create a better everyday life for the many people.”

In its fiscal 2023 financial report, IKEA UK recorded 11.9% sales growth compared to the previous year, generating a turnover of £2.46bn.