NORFOLK, Va. (WAVY) — Ikea is raising its starting wages for U.S. workers to $16 per hour.

Ikea officials announced the latest wage update with some hourly wages starting at $17 or $18 depending on location. It is expected to bring the average hourly wage to $20.

The new starting wage is effective beginning January 1, 2022, and will apply to full-time, part-time, temporary, and seasonal co-workers across the country.

The company has also enhanced its comprehensive benefits package to now include:

  • A minimum of five weeks of paid time away from work for all workers
  • Education assistance
  • Back-up child and adult care

The majority of U.S. co-workers will also receive the “One IKEA Bonus,” a performance-based payout totaling $76 million.