Ikea is acting on its own to lift the minimum wage, and it is doing it in a unique way: The U.S. average will be 10.76 an hour, but will be adjusted in different ways for cost of living. Ikea workers in Woodbridge, Va., will get the highest, at $13.22 an hour. Workers in Pittsburgh and West Chester, Ohio, will get the lowest, at $8.69.
The changes go into effect on Jan. 1, 2015. The federal minimum wage is $7.25, though some states and cities pay more.
Massachusetts is on track to have the highest state minimum wage, taking it to $11 per hour by 2017, up from $8 today. Seattle plans to raise the minimum hourly wage to $15 from $9.32. Businesses with fewer than 500 workers have until 2021 to phase it in.
On average, Ikea’s pay change will be a 17% increase, the company said.