IKEA, with U.S. headquarters in Conshohocken, is planning to begin the coming year with a wage increase and enhanced benefits for its co-workers.

Effective January 1, 2022, the Swedish furnishings giant is increasing its starting wage in the U.S. to $16 per hour, with some hourly wages starting higher, at $17 or $18, depending on location. The increase will apply to full-time, part-time, temporary, and seasonal co-workers.

This bump in pay will bring the average hourly wage across the U.S. to $20.

IKEA is also boosting its benefits package. All co-workers will receive a minimum of five weeks of paid time away from work, education assistance, back-up child and adult care, and expanded health care benefits.

Thanks to strong sales performance in the last fiscal year, the majority of U.S. co-workers will also receive the “One IKEA Bonus.” The performance-based payout will total $76 million and be added onto the previously announced one-time Ikea global appreciation gift of $17 million.

“Every day I am humbled by our 17,000 co-workers, each of whom makes our success as a company possible and contributes to our commitment to creating better homes, better communities, and a better planet,” said Javier Quiñones, CEO & Chief Sustainability Officer at IKEA U.S.