IKEA announced that they will give their Indian employees Rs. 1,40,219 as an extra bonus, this year

You read that right. The Swedish home-furnishing giant announced that to say thank you to its employees through Tack! – the IKEA Group loyalty program. IKEA Group will pay its co-workers another €108 million this year into their pension funds, for their loyalty and contribution.

“I am happy to announce that this year’s payout will give our co-workers at IKEA Group in India a Rs.1,40,219/- each in their pension fund for this year. In India today we have around 300 co-workers, which will grow to 1500+ co-workers in a year and 14000 by 2025. We value our co-workers who are our most valuable assets.” said Anna-Carin Mansson, Country HR Manager, IKEA India.

IKEA has been sourcing from India for the 30 years for its global stores. In India, it currently has 50 suppliers with 45,000 direct employees and 400,000 people in the extended supply chain. It is is the first major single brand retailer to get FDI approval and plans to open several stores in Delhi/NCR, Hyderabad, Karnataka, and Maharashtra. The first IKEA India store is slated to open in Hyderabad by end December and Mumbai in mid-2018.

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As part of this unique loyalty program, IKEA Group co-workers annually receive an extra payout in addition to existing pensions, according to the same fair and simple principle.

Every full-time IKEA Group co-worker in India who has worked for IKEA for five years or more receives the same amount regardless of their position or salary level. Part-time co-workers will receive a proportional amount in relation to hours worked.

Since Financial Year 2014, €413 million has been allocated to the TACK! programme. The global funding is divided amongst all IKEA Group countries, based on each country’s proportion of the total salary and wages. A pre-requisite for a funding of the program is that IKEA Group reaches its goal results.