IKEA India staff to get Rs 1.12 lakh as pension pay-out

New Delhi: Employees of Swedish home furnishings major IKEA in India will get a lumpsum amount of Rs 1.12 lakh as part of its global retirement fund.

The company said it has put another Rs 737 crore into the pension fundings of its co-workers all over the world.

"Under the programme, each eligible IKEA India employee will get Rs 1,12,117 as part of pension fund, irrespective of designation or level," Ikea India said in a statement.

"In India, today we are a small team of 200 people but we expect to grow to be (over) 10,000 co-workers over time, as we plan to build 25 stores in the coming years," IKEA India Country HR Manager Anna Carin said.

Each store will employ about 500 to 700 co-workers directly and 1,200 indirectly in the supply chain. In India, IKEA aims to employ 50 percent women co-workers across all levels, Carin added.

"This is the companies way of saying thank you to its co-workers through TACK! - which is the IKEA Group's loyalty programme," the company said.

It further added: "We believe that TACK is a great contribution in creating a better everyday life for our co-workers, who are our most important asset."

As a part of loyalty programme, inspired by the founder Ingvar Kamprad, IKEA Group co-workers annually receive an extra pay-out in addition to existing pensions, according to the same fair and simple principle.

"Every co-worker is important for our success and continued growth. This is why 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," Carin added.

TACK was introduced two years before and the company had alloted Rs 2,148 crore. The global funding is divided between all IKEA Group countries, based on each country's proportion of the total salary and wages.

The loyalty programme benefits some 1,28,000 co-workers in 43 countries.