New IKEA US Parental Leave Policy Expands Benefit To Up To Four Months Paid Leave For Both Hourly And Salaried Co-Workers
IKEA US announced that effective January 1, 2017, it will offer a new parental leave policy for co-workers who are expanding their families, providing up to four months of paid parental leave. This includes salaried and hourly workers, both mothers and fathers, and adoptive and foster parents. This expanded policy was introduced to ensure co-workers have the opportunity to bond with their children and connect as a new family.
Co-workers who have been with IKEA for more than one year can take up to three months of paid leave to be with their family, receiving 100% of their base wage for the first six weeks of parental leave and 50% for an additional six weeks. Co-workers with three or more years’ tenure can take up to four months of paid leave, receiving 100% of their base wage for the first eight weeks and 50% for an additional eight weeks. This is in addition to the six to eight weeks of Short Term Disability available to all co-workers regardless of tenure.
“At IKEA, we believe time with family and friends is so important for a healthy work-life balance and a happy and productive workforce,” said Lars Petersson, IKEA US President. “This benefit, which applies to all parents, will give our co-workers the opportunity to spend more time with their families when welcoming a child. Our co-workers are our most important resource, which is why we continue to invest in helping them reach their dream.“
IKEA recently conducted research into what co-workers thought were the most important aspects of the American Dream. Topping the list was work-life balance and moments spent with family and friends. The new expanded parental leave benefit is the latest demonstration of IKEA’s commitment to creating an outstanding work experience for co-workers.
In addition, IKEA US recognizes that co-workers who are not welcoming a child into their families may need time away from work as well. That’s why IKEA is also introducing a sabbatical program for co-workers to take time to refresh and engage in personal and professional growth and development.
The expanded parental leave and sabbatical policies add to the growing list of investments IKEA has made in its co-workers:
- In 2015, IKEA implemented a new minimum wage structure based on the local living costs instead of the cost of labor. In 2016, IKEA raised wages again.
- IKEA offers excellent medical plans, vision coverage (at no cost to full time co-workers), along with dental, and prescription coverage to help co-workers and families stay well. All co-workers who work 20 hours or more per week (approximately 75% of our co-workers) are eligible for medical benefits.
- In FY17, pay check deductions for medical insurance will be reduced between 5-25%.
- IKEA offers a 401K plan and match for all co-workers.
In addition, IKEA offers a profit sharing program called Tack! (“thank you” in Swedish), a long-term loyalty program that strengthens IKEA co-workers’ retirement benefits.